Louisiana Wind & Solar Energy Tax Credit

[NARRATOR] On the roof of his home in Baton
Rouge, Herb Sumrall is inspecting an innovation that’s already saving money every month,
solar panels. [Herb Sumrall, Homeowner] My wife and I, when
we built the house, were pretty much into solar conservation. So, we’ve done a bunch
of things over the years and this seemed like the appropriate thing to do and the appropriate
time. [NARRATOR] Solar panels make electricity from
sunlight and Sumrall’s power bill is a fourth of what it used to be. Plus, the cost of installing
this array will be significantly offset when he files his state and federal taxes. [William Little, Louisiana Department of Revenue]
The Solar and Wind Power Tax Credit gives a taxpayer a refundable credit for 50 percent
of the first 25 thousand dollars of the costs associated with installing a wind or solar
powered energy system. That is the state tax credit. The analogous federal tax credit is
30 percent of the same installation costs. Adding these two together, you get 80 percent
of the installation costs. Legislative leaders both in Washington and the state level; are
trying to generate energy efficiency at the home residence level but to spur creation
of the industry in the solar and wind power field. [SUMRALL] So, it makes it very profitable
and it encourages you to do the right thing – to do it. [NARRATOR] This is a tax credit, not just
a deduction. It can be claimed for new installations or when an individual purchases a new home
or apartment project with the system already installed. For more information on the income
tax credit for wind or solar energy systems, visit revenue.louisiana.gov.

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