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Louisiana Solar Energy Credit Cap
Posted on 1/2/16 at 5:40 pm
Posted on 1/2/16 at 5:40 pm
Earlier this year I recently installed solar panels on my residence with the assumption the state will give a 50% tax credit up to 12,500 max per system.
Yesterday, recieved my tax information from the solar company, with a lovely email attached. The state has decided to change now back out of what was in place for the curent year. Now there is a 10 million cap on credits for the tax years of 2015 and 2016, and 5 million for 2017.
The credits will be on a first come, first serve basis until cap is reached. The company suggested filing my taxes ASAP to recieve my refund.
Does anyone possibly have any prediction how long it will take for this 10 million cap to run out? Regardless I am planning on filing day 1 that I can. Just pretty nerve racking and shitty the state says one thing, then changes it in the middle of the year to screw people over.
Yesterday, recieved my tax information from the solar company, with a lovely email attached. The state has decided to change now back out of what was in place for the curent year. Now there is a 10 million cap on credits for the tax years of 2015 and 2016, and 5 million for 2017.
The credits will be on a first come, first serve basis until cap is reached. The company suggested filing my taxes ASAP to recieve my refund.
Does anyone possibly have any prediction how long it will take for this 10 million cap to run out? Regardless I am planning on filing day 1 that I can. Just pretty nerve racking and shitty the state says one thing, then changes it in the middle of the year to screw people over.
2
Posted on 1/2/16 at 5:42 pm to blades8088
And why not, just pay everyone what they was told, in the year of 2015 and stop the credit on Jan.1 2016 instead of screwing people over with loans they thought they would get reimbursed for.
Posted on 1/2/16 at 5:49 pm to blades8088
You don't need to file your tax return to get the state credit. Just file the paperwork now and you will get the full credit. The 10 mil cap will not be reached anytime soon.
Posted on 1/2/16 at 5:52 pm to SippyCup
Oh really so I can file it now before I do my taxes?
Posted on 1/2/16 at 6:09 pm to SippyCup
The email made it sound like the 10mil would run out very quickly
Posted on 1/2/16 at 6:26 pm to blades8088
quote:
Oh really so I can file it now before I do my taxes?
State = yes
Fed = no
This post was edited on 1/2/16 at 6:28 pm
Posted on 1/18/16 at 8:06 am to SippyCup
Wanted to update for the OP.
Spoke with 3 attorneys from LDR on Friday. Took 3 to finally get someone who slightly knew what they were taking about.
New law states all credits MUST BE e-filed and motorized. Even if you are not required to file a tax return you must file one in order to get the credit.
They still didn't know the answer as to what happens when this fiscal years money runs out. Do the people who filed get in line for next fiscal years cap or do they have to re-file in 2017. I'm not sure how they could file a 2015 credit on a 2016 return but who would have thought they would change the rules after people have already purchased their systems.
Spoke with 3 attorneys from LDR on Friday. Took 3 to finally get someone who slightly knew what they were taking about.
New law states all credits MUST BE e-filed and motorized. Even if you are not required to file a tax return you must file one in order to get the credit.
They still didn't know the answer as to what happens when this fiscal years money runs out. Do the people who filed get in line for next fiscal years cap or do they have to re-file in 2017. I'm not sure how they could file a 2015 credit on a 2016 return but who would have thought they would change the rules after people have already purchased their systems.
Posted on 1/18/16 at 10:24 am to SippyCup
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.
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.
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