Governor Bobby Jindal signed two Green Building bills into law this July 2009.
The first, Act 348, authorizes the creation of sustainable energy financing districts and was authored by Senator Nick Gautreaux. The second, ACT 520, authorizes a tax credit for certain green job industries, and was authored by Representative Walt Leger.
The two acts provide green building contractors and businesses, and the purchasers of those products and services, some of the most beneficial tax incentives in the nation. The new laws also help Louisiana hold its ground in the national green building boom.
Act 348 – Gautreaux (LA R.S. 33:130.790 – 793)
The digest of Act 348 only scratches the surface for the green building opportunities created by this act. Here is the official summary for the Act:
Authorizes creation of sustainable energy financing districts by local governmental subdivisions and provides for issuance of bonds and property assessment programs for solar and energy efficiency projects.
The effect of this act, in plain english, is to allow local governments and subdivisions to incur debt for the purposes of providing these “energy financing districts” with necessary funds to cover the cost of energy efficiency improvements or renewable energy improvements.
These loans are made directly by the district to the home or property owner, and can be paid back over a twenty year period. Property owners can even make arrangements to pay back loans through its payment of annual property taxes.
On July 7, 2009, Governor Bobby Jindal caused Act 348 to become law. Time will tell whether local government subdivisions will take advantage of the new law and start offering loans to homeowners and property owners who are interested in making green building improvements to their properties.
If these loans become available, and used, it could lead to an enormous amount of green building projects throughout Louisiana. Read the full text of Act 348
Act 520 – Leger (La R.S. 47:6035)
According to the New Orleans’ Times Picayune article on Act 520, the tax credit system created by this proposal is similar to the tax credits offered to filmmakers in Louisiana. State Representative Walt Leger hopes to lure green businesses to Louisiana through the same trick that helped coin New Orleans’ “Broadway South.”
The tax credits are explained in the Times Picayune Article as follows:
Working on a tiered system that offers 10 percent to 25 percent, based on how much companies spend, the tax credit applies to the start-up costs of a new green business as well as to the payroll of each new green job…As defined in the bill, green jobs and industries can include a wide range of potential businesses, including renewable energy services, green building and construction, weatherization, energy rating, biofuels, energy-efficient transportation, deconstruction and green product manufacturers.
The potential reach of the new legislation – known as the Louisiana Green Jobs Initiative – is wide.
With the post-Katrina construction silver lining, the injection of stimulus cash, and the national (and local) green building boom…Louisiana’s Green Market may be in for a perfect storm in 2009 and 2010.
Read full text of Act 520.