Louisiana House votes to phase out solar energy tax credits by 2020 ...

Louisiana is on the path to phase out the state's solar energy tax credit: The state House on Tuesday easily approved a bill to end the incentives by 2020.

"As the production cost of solar is going down, then (solar energy systems are) becoming more affordable and therefore the credits aren't as needed as they once were," bill sponsor Erich Ponti, R-Baton Rouge, told the House on Tuesday.House Bill 705 would reduce income tax credits for the purchase and installation costs of solar electric and thermal systems and would eliminate the tax credit for wind generators, which have not gained much traction in the state because of its relatively flat terrain. Louisianians currently can claim up to 50 percent of the first $25,000 in costs for the purchase and installation of solar energy systems. The bill would split this category in two: solar thermal, which provides heating, and solar electric, which provides power. Solar thermal tax credits would be immediately phased down from the current level to 50 percent of the first $10,000 in costs; after 2017, the level would be lowered to 35 percent. Solar electric credits would be kept at current levels until 2017 and then would be phased down to 35 percent of $25,000 in costs. On Dec. 31, 2020, the credits would be eliminated.The bill, if passed, also would tweak the current law to allow only one solar system per home. Ponti, responding to lawmakers' questions about abuse of the credits, said, "Multi-system installation is very prevalent."October figures released by the state showed the solar energy tax incentives have far exceeded original cost projections. When first approved by lawmakers five years ago, the incentives were not expected to cost state taxpayers more than $500,000 a year in lost tax revenue.

The real price tag amounted to nearly $39?million through 2011. Ponti said Tuesday the state paid $24 million for the credits in 2012.

The bill passed 95-1, with Larose Democrat Jerry "Truck" Gisclair voting against it. It was approved without opposition in committee. It now heads to the Senate for further debate.

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Source: http://www.nola.com/politics/index.ssf/2013/05/solar_clean_energy_tax_la.html

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