Solar energy continues to grow. In fact, solar photovoltaic plants are projected to add about 36.7 gigawatts of solar energy in 2013, whereas wind farms are project to add only 35.5 gigawatts, according to a Bloomberg New Energy Financearticle. Interestingly, this is the first time solar energy output is predicted to beat wind energy output, notes the article.
As solar energy becomes increasingly popular, it is becoming the subject of more and more tax rulings. The Louisiana Department of Revenue, for example, has been busy issuing tax information about its solar energy system tax credit.
Recently, the department issued an information bulletin on the state’s new solar credit that became law in June, reports a Bloomberg BNA Weekly State Tax Reportarticle.
Among other changes, the legislation reduces the tax credit amount for leased systems based on certain restrictions placed on the credit, notes the article.
For leased systems installed before Jan. 1, 2014, the credit equals 50 percent of the first $25,000 of the system’s purchase price. However, for leased systems installed on or after Jan. 1, 2014, the credit is reduced to 38 percent of the first $25,000 of the system’s purchase price.
In June, the department issued a revenue ruling that explains the sales tax treatment of leased solar panels, according to another Bloomberg BNA Weekly State Tax Reportarticle. The ruling explains that roof and ground-mounted solar panels leased by homeowners are considered moveable property and, therefore, subject to lease tax.
In addition, an assigned solar energy systems credit, given in exchange for the homeowner’s right to use the solar panels, is subject to lease tax as well.
For more information about various solar energy tax credits and incentives, check out Bloomberg BNA’s Green Incentives Navigator.
In other developments . . .
The New York Department of Taxation and Finance issued an advisory opinion regarding a company’s use of the brownfield tax credit for property it is considering purchasing, according to a Bloomberg BNA Weekly State Tax Reportarticle. The property has been in the Brownfield Cleanup Program since 2006.
By: Kathleen Caggiano
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)