Tax Incentives

Money SuitcaseWhat makes solar panel installation in Baton Rouge so affordable right now is the incredible tax incentives that are being offered by both Louisiana and the United States. Where some instances in the past dictated that people could only take one or the other in regards to certain types of incentives, the current climate allows you to take both the federal and state rebates. These are, by far, some of the most important things to learn about solar right now. What this ends up leading to is a possible $20,000 heading your way if you react in time to receive everything currently available.

 

Louisiana’s Solar Energy Income Tax Credit

The Louisiana Solar Energy Income Tax Credit for Individuals and Businesses is widely considered to be the single most beneficial tax credit or rebate in the country as it gives back 50% of whatever was the full cost of the solar system installation. This credit alone can get you a refund of up to $12,500 since the total installation cost caps out at a generously sizable $25,000. Additionally, the Solar Energy Income Tax Credit can be used multiple times, even during the same year’s tax filing: Every property that has a solar system installed, be it solar panels for home electricity usage, water heating systems or any other solar-centered home installation or combination of systems thereof.

And, if you are considering installing a solar energy system, you will want to act as quickly as possible. You see, the big-energy lobby and more than a handful of Louisiana lawmakers are looking to get rid of LSA-R.S. 47: 6030, and they are attempting to be both quiet and efficient about ending it (which, coincidentally enough, is similar in description to how solar energy operates).

However, even if the tax credit is left alone, it still has a scheduled end date. Per the law itself, “There shall be no tax credits authorized, issued, or granted […] for systems installed after December 31, 2017.” Add to this the fact that July 1, 2015 will modify the credit so every watt toward the capacity can only be charged a maximum of $1, whereas the current cap that can be applied toward the total installation cost is $3.50. If you truly want to maximize your tax incentive, you need to act before July, 2015; however, the credit will still be one of the best in the nation after that date.

 

Federal Government’s Residential Renewable Energy Tax Credit

Although the percentage you can receive as a credit toward the cost of solar installations is lower than the one offered by Louisiana, Energy.gov points out that, “There is no maximum credit for systems placed in service after 2008.” This means exactly what you think it does: The federal government doesn’t have a payment cap for their solar installation tax credit. What you should be aware of, though, is that the Residential Renewable Energy Tax Credit is slated to end on December 31, 2016.

Nevertheless, and like the Louisiana tax credit, this federal tax credit runs the risk of being eliminated at any given time, which would raise the cost of solar energy installs by thousands of dollars, if not potentially surpassing a ten thousand dollar installation cost. Those interested in solar systems for their home or business must act fast to take advantage of these remarkable bonuses, which already comes with the perk of lower monthly payments than traditional electricity.

 

So Where Does the $20,000 Come In?

We understand that many people start to glaze over when anything concerning taxes is brought up, but the $20,000 is just far too lucrative to not mention (and re-mention a couple more times). As discussed above in regards to Louisiana’s solar tax credit, if the cost of an installation reaches or surpasses $25,000 total, that already accounts for $12,500. Now here’s where the math ends up lining up perfectly to get you $20k. With an installation at $25,000, the 30% comes out to $7,500. Then, you simply just add the two credit amounts together and find your total tax incentive:

$7,500 + $12,500
=

$20,000

 

Another Note on Taxes Concerning Solar Power

Although it is not in the form of cash straight to you, Louisiana has set up a great rule that deals with property taxes. Most of the time, when you make an improvement on a home, the value of the property itself raises, which thereby causes your property tax to get more expensive. On the other hand, if you get solar panels installed through us you will be able to enjoy all the benefits of a more valuable home without having to pay more for property taxes. This is thanks to a 100% exemption from any rise in your home value that’s due to your solar panel installation.

 

Give us a call when you’re ready to talk about photovoltaics, tax incentives, earning additional credits and saving huge sums of cash by going solar: (225) 424-8826 

 

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