Well we may not be the most “green” state in the union; but according to Green Scene Magazine we are the most favorable and offer the best rebates on solar additions to your home.

According to the magazine the Louisiana Legislature in 2007 enacted some of the most progressive legislation in the country giving up to a 50% rebate on your taxes on solar and wind systems installed (up to $25,000 per system).  The best part is that if you reach how much you owe in taxes, then the state will send you a check for the rest. This is truly remarkable and seems almost too good to be true.

For more information See La. R.S. 47:6030 and its subparts.

This 50% savings from the Louisiana government can be lumped with the 30% by the Federal government as provided by the recent economic stimulus bill.

There are two Louisiana companies that are leading the way in this solar revolution, Gulf South Solar and South Coast Solar. These two leaders are experienced with the technology and they can aid in the paperwork regarding the refunds.

WWL recently wrote an article on the Louisiana Legislature offered refund.  According to this article the new legislation opened the door, not only to residents but to developers and third parties to get the credit. WWL describes somewhat of a lease to own system whereby you lease and pay the solar company a monthly bill until a certain amount then you simply purchase the system for a dollar.

This is an effort to help spur developers when they are planning communities in the future. Who would have ever thought that Louisiana would be a pioneer in re-useable and renewable resources. The only way that we will ever see the benefits of this legislation is to get out and take advantage of it before it is too late. So instead of complaining about the heat all the time, try making it work for you and let the Sun save you cash.

A May 2009 press release from Louisiana Senator Neil Gautreaux’s office explains that the proposal of Senate Bill 91 gained unanimous support after a group of fifth graders testified on behalf of the legislation and urged state legislators to “go green.”

While still pending in Baton Rouge and not yet on its way to the governor’s desk, the “green building” bill is one of the more aggressive green building tax credits proposed in the nation.

Senator Gauthreaux’s office sells the bill in their press release with the following:

This tax credit, combined with the federal tax credits, will make our state a leader in incentives for the promotion of alternative energy…Besides promoting the adoption of resources that generate safe, efficient and clean energy, the tax incentives will also be a boon to economic development by creating new “green jobs.”

Summary of Senate Bill 91

Summary:  Grants a transferable tax credit until January 1, 2013 for income and franchise franchise taxes of 25% of the costs and expenses attributable to the construction or for the installation of certain qualified energy systems on and after January 1, 2009 limited to $450,000 per system.

Status:  Pending in Conference Committee

Qualifying Energy Systems:  Wind, Solar Energy, Small irrigation power, Open-lop and closed-loop biomass, geothermal energy, and more.

Read the full text of Senate Bill 91.

Are you absolutely confused about “green tax credits?”

We hear the terminology enough, as green building and green products aren’t short on press coverage.  Too often, however, it seems that the tax credit system isn’t actually explained, and one is left to wade through Google searches to understand how to qualify for these tax breaks.

Tax Credits for Home Builders

Yes, you read that correctly….there are tax credits available to home builders who build homes to certain energy standards.   These tax credits apply to builders of new manufactured or non-manufactured homes.

This is a great way for home builders to make extra money on a home building project, and can be especially beneficial to home builders who build tens or hundreds of homes each year.

Each new home that achieves 50% more energy savings from the 2004 International Energy Conservation Code (IECC) qualifies for a $2000 tax credit.   A 30% energy savings qualifies for a $1000 credit.   Builders simply need to fill out and return IRS Form 8908.

To qualify for these credits, the home must be completed after August 8, 2005, and sold between Jan. 1 2006 and December 31, 2009.   Builders who have built qualifying homes, but did not apply for the credit, can still apply.

We’re still waiting to see whether these credits are extended past the end of the year.  More detailed information about the IECC and the tax credits can be found at this link:  http://www.energystar.gov/index.cfm?c=tax_credits.tx_hm_builders

Tax Deductions for Commercial Buildings

Environmental tax credits are not just for residents and residential builders.

To understand these available deductions, it’s important to read about and understand the ASHRAE Standard 90.1 2001.

Commercial buildings qualify for a tax deduction up to $1.80 per square foot when new or existing commercial buildings save 50% of the heating and cooling energy of a building that meets ASHRAE standards.

The amount of deduction depends on the building savings.   The deduction can be made to the owner or designer of the building.   They are available for HVAC systems placed in service from Jan 1 2006 through Dec 31, 2013.

Check out IRS Notice 2006-52 for guidance on how to make these deductions.   Check out this link for more details:  http://www.energystar.gov/index.cfm?c=tax_credits.tx_comm_buildings

Tax Credits for Homeowners

Far and away, the most available tax credits are available to homeowners.

For existing homes in 2009 and 2010, homeowners can get up to 30% of the cost for energy efficient installations of windows and doors, insulation, roofs, HVAC systems, water heaters and biomass stoves.

For new and existing homes through the year 2016, tax credits are available to homeowners of up to 30% the cost of energy efficient installations of geothermal heat pumps, solar panels, solar water heaters, small wind energy systems, and fuel cells.

Information on each available credit is available at this link, in easy to understand language:  http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

How to Get A Better Grip

Learning more about available tax credits is both easy and hard for the same reason:   there is a of information on the subject out there.

Here are some good resources:

http://www.energystar.gov/taxcredits (the BIBLE of energy tax credits – including a summary chart of tax credits for homeowners)

The Tax Incentive Assistance Project (TIAP)

Read about pending Tax Credit Legislation

Check Out this Residential Flyer from the TIAP

Check Out this Commercial Flyer from the TIAP

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.

A few weeks ago, we posted an article about the tax credits available to homeowners, property owners and developers for installing solar energy equipment in Louisiana (Louisiana the Greenest?  It’s Certainly The Brightest).  Therein, we explained that Louisiana has some of the most impressive incentives in the nation for solar energy installations.

Let’s look at this issue from another angle:  Those who are supplying and installing the solar energy equipment.

The available tax incentives and market demand has increased competition in these installations, and still more organizations are wondering how they can offer solar installation services to their clients.    Since the real advantage to installing solar panels or solar energy equipment is the available tax credits, we’ll focus this blog post on what qualifications the installer must have for its clients to be eligible for state and federal tax credits.

The Louisiana Board of Contractor’s Study Reference Guide for the Electrical Work examination has this within it, giving insight on the certification requirement for those interested in installing this equipment:

Electrical contractors who intend to do photovoltaic panel and windmill installations must, in addition to getting their Electrical Work classification, also obtain independently the classification of “Solar Energy Equipment” and meet other requirements in order for their customers to be eligible for certain state tax credits.For more information about eligibility for the credits, please contact the Louisiana Department of Revenue and Taxation.

In addition to this “Solar Energy Equipment” classification, the Department of Revenue’s Notice of Intent on Income Tax Credits for Wind or Solar Energy Systems (LAC: 61:I:1907) requires the installing contractor to have “a certificate of training in the design and installation of solar energy systems from an industry recognized training entity, Louisiana technical college, or the owner of the residence.”

Who are some industry recognized training entities?   Well, I suppose this is a matter for interpretation, but the following programs should be worthy:

• La Clean Tech
• NABCEP (North American Board of Certified Energy Practitioners)
• Boots on the Roof
• Ontility Training

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• “Green Building” Senate Bill 91 Pending in Louisiana Legislature (lagreenlaw.com)