Clean Energy Business Tax Incentives 
Beginning in 2007, the Louisiana legislature passed Act 371, which gives tax incentives for the purchase and installation of green technology.
Clean Energy Business Tax Incentives
LOUISIANA
Tax Credit
- Owners and developers of residential and multi-family housing may receive a corporate tax for the purchase and installation of solar, photovoltaic and wind energy systems. The credit for homeowners and condo and apartment owners is 50% of the first $25,000 of cost; - the maximum incentive is $12,500. The credit must be fully claimed in the taxable year in which the system is installed and placed in service. This tax credit may be combined with any federal tax incentive, but it may not be combined with any other state tax incentive.
- Louisiana also offers a 30% rebate for energy efficient home improvement through the Department of Natural Resources’ Home Energy Rebate Option and loans for upgrades.
Tax Exemptions
· State sales tax exemption on machinery and equipment used by an industrial manufacturing plant to generate electric power for self-consumption or cogeneration.
· State and local sales tax exemption on machinery and equipment used to manufacture, produce or extract unblended biodiesel, as well as unblended biodiesel used as a fuel by a registered manufacturer.
· State and local sales and use tax exemption on the sale of any alternative substance when used as a fuel by a manufacturer. “Alternative substance” means any substance other than any product of oil, natural gas, coal, lignite, refinery gas, nuclear fuel or electricity.
FEDERAL
Modified Accelerated Cost-Recovery System + Bonus Depreciation
· The Economic Stimulus Act of 2008 allowed for MACRS depreciation of five years for solar, wind and geothermal; the biomass recovery period is seven years. The Act also includes a 50% bonus depreciation provision for eligible renewable-energy systems acquired and placed in service in 2008. If these systems meet certain requirements, the owner is entitled to deduct 50% of the adjusted basis of the property in 2008 (IRS Publication 946 and Form 4562).
Tax Credits
· Corporate tax credit for solar water, space, thermal electric, thermal process and hybrid lighting, photovoltaics, geothermal electric, fuel cells, direct use geothermal and microturbines. The credit is 30% for solar and fuel cells through 2016 and 10% for microturbines and geothermal.. The geothermal credit is 10%. (Consult IRS Form 3468 for details.)
· The renewable electricity production credit is a per kilowatt-hour tax credit for electricity generated by qualified energy resources: landfill gas, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, refined coal, Indian coal, small hydroelectric. The credit is 2¢ per kilowatt hour for wind, geothermal and closed-loop biomass and 1¢ per kilowatt for other eligible technologies. It applies to the first ten years of operation. (Consult the Tax Relief and Health Care Act of 2006 and IRS Forms 8835 and 3800.)
· Tax credits for biodiesel production run $0.50 to $1.00 per gallon. Consult IRS Form 8864 for details concerning eligibility requirements for qualified biodiesel and renewable diesel fuels.
· Energy efficiency home tax credits of $1,000 (manufactured homes) to $2,000 (sold homes) may be claimed by eligible contactors who constructed the qualified new energy efficient home or who manufactured the home. (Consult IRS Form 8908 for details.)
· Buyers of new alternative fuel vehicles placed in service after January 1, 2006 may earn a tax credit equal to 50% of the incremental cost of the vehicle. An additional 30% of the incremental cost of vehicles with near-zero emissions also is available.
