Tax Credits

Louisiana Solar Tax Credits –
and what you need to know

(Updated July, 2016)

From the Associated Press:

No more: Louisiana’s Department of Revenue says homeowners have applied for more solar energy tax credits this year than the three-year program can cover. The Associated Press reports the 2015 Legislature passed the program, with limits of $10 million for each of the first two years and a $5 million cap for the third year. It ends Dec. 31, 2017. A news release Tuesday says homeowners have applied for $39 million worth of credits, adding people who buy solar energy systems from this point forward should not expect to get the credits. Certified letters will notify taxpayers who couldn’t get money because it ran out. The claims are processed in order of the date each tax return was filed.

 Is solar still a good deal in 2016?  (Tax credits and net metering changes)

If you bought your solar power system in 2015 you need the following form for the state tax credit:

Click here for the 2015 State Solar Tax Credit R-1086 form.

If you are considering solar in 2016

Don’t postpone any longer if you have been considering solar!  Thanks to the 30% Federal Tax Credit (extended 5 more years), and price drop of solar installed (50% in Louisiana), it is very affordable to get a solar system installed on your home.  Contact us now to get started.  See the blog for the latest

How Do the Tax Credits Work Today?

Federal Incentives

Now residences get the same federal tax credits that business do.  You get a 30% federal tax credit on the cost of your system.  If you can’t use all of the tax credit this year you can carry it forward to future years to keep eliminating your federal taxes.

State Incentives

Louisiana encouraged residents for 8 years with a 50% refundable tax credit on solar power systems.
As of 2016 that is over

How much will I pay?

If your system costs $20,000 before tax credits, then the net will be $14000! We provide a 12 month, same as cash loan so you can OWN YOUR SYSTEM AND GET YOUR TAX CREDITS with no money down.  In Louisiana, this is the best way to go.

Cost of system                            $20,000*

30% Federal Tax Credit           ($6,000)

You pay                                           $14,000**

*This is an approximation of cost and will vary by the system that you select.  (We offer Financing with no money out of pocket for a year – call us!)  State tax credits are refundable – less what you owe in state taxes. Like all tax refunds, solar tax credit refunds are considered taxable income by the Federal Tax Commission. 

**Please also check with your CPA on your individual tax situation.

Gulf South Solar opened in 2003 and was installing solar power systems for our customers 5 YEARS BEFORE TAX CREDITS.  Before any other solar company opened, Gulf South Solar testified at the Louisiana Capital to get our customers solar tax credits which have been in place now for over 8 years.  You will be paying more as the solar tax credits go away, but solar prices have dropped 50% since we started.

Business Tax Credits

You get the 30% Federal Tax credit through 2016 so don’t put off your system any longer.  When you include your depreciation schedules it make going solar an even more profitable endeavor. Have your CPA look into the MACRS depreciation schedules and you will be amazed at how affordable and profitable it is to install a PV solar electric system at your business.

Want more information?

Check out the resources we have gathered for you below. Also, make sure to consult your CPA about your individual tax situation.

Explanation of the Louisiana Solar Tax Credits

Louisiana Solar Energy Society

DSIRE State Tax Credit information

Federal Solar Tax Credit information

DSIRE Federal Tax Credit information

American Solar Energy Society

Full Text of H.R. 1424

Grants and Depreciation Links

USDA Renewable Energy Grant (REAP)

Rural Energy Guarantee Loan Program (REAP) 

IRS Publication 946 –MACRS Depreciation information

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