re: Louisiana Solar Energy Credit Cap

Sippy, on matters like this it's best not to talk to the attorneys at LDR. You need to speak to the ops people.

Here is what we are being told from pretty high up in LDR:

First off the caps are on a fiscal year, not tax year, calendar.

There is a monthly recap of credits claimed here: Recap This is current as of Dec 31.

When the year cap is hit, that is all of the credits that will be redeemed for that year. On the day the cap is hit, all claims for that day are pro-rata allocated. The cap will be maintained daily by LDR (but only announced monthly).

If your claim does not get in under the cap, you will be placed at the front of the under the next year's cap, which starts July 1.

For example, you have a solar claim processed on Feb 18th and the cap for 2015-2016 has been reached. You will be placed in line for the 2016-2017 cap. On July 1, 2017, they will start processing claims against that cap.

You will then get your money. If you are using part of the credit to pay a balance due, it will apply to your account as of that date.

What is unknown currently is, if you are using the credit to pay tax due, will you owe interest from May 15th until the time the credit is applied on July 1?

It's all possible that we will cap out on all years ahead of time. Let's say $30 million of credits are processed in January 2016. That would fill up the cap for this year, and also the caps for 2016-2017 and 2917-2018. That's when the "you are screwed" sets in.

The big unknown is, we don't know how many credits are in line to be claimed.