Summary
According to RS 47:6037, No credit shall be allowed pursuant to this Section for applications received on or after July 1, 2017.
NOTE: HB 733 did not define eligible renewable energy or energy efficiency technologies. The LA Department of Revenue will be releasing more information about this program in the coming months and will likely establish a list of technologies eligible for these incentives. This program will use federal funding under the American Recovery and Reinvestment Act of 2009 (ARRA).
In July 2009, Louisiana enacted HB 733, creating a tax credit to encourage and support the development of energy efficiency and renewable energy industries. This legislation enacted a refundable and transferable tax credit that will be provided to companies for green jobs industries, including energy efficient building, construction and retrofit industries, the renewable energy power industry, manufacturing of sustainable products, and energy efficiency and renewable energy projects. This tax credit applies broadly to projects that create green jobs and and also applies to projects for construction, repair or renovation of state-certified green projects.
The tax credit awarded depends on the base investment a company makes. For base investments of greater than $100,000 and less than or equal to $300,000, companies will get a 10% tax credit. For base investments of greater than $300,000 and less than or equal to $1 million, companies will get a 20% tax credit. For base investments of greater than $1 million, companies will get a 25% tax credit. If the base investment is used for the payroll for Louisiana residents or graduates from certain Louisiana schools, then additional tax credits may be awarded. The maximum amount a company can receive in tax credits is $1 million. In total, $5 million per year is available on a first-come, first-served basis for a minimum of three years. Funding for this program will come from federal funding sources to support green jobs.
Taking this tax credit may reduce a company's ability to take state rebates or other incentives. This tax credit can be taken against either individual or corporate income tax. Credits can be earned once 25% of expenditures have been made. The Louisiana Department of Economic Development will certify projects for this tax credit.
