Louisiana

Louisiana provides a tax credit for the purchase and installation of solar and wind energy systems purchased and installed on or after January 1, 2008. The credit may be applied to personal, corporate or franchise taxes, depending on the entity which purchases and installs the system, but the system must be installed at either a residence or a residential rental apartment complex to be eligible. HB 858, enacted in July 2009, extended the tax credit to taxpayers that purchase and install systems rather than only the owners of the residential property. This legislation also clarifies that only one credit can be taken per system, so if the property is sold, the taxpayer who originally claimed the credit must disclose this, as the new owner will not be eligible for another tax credit on the same system.

The tax credit may be applied both to solar-electric systems (photovoltaic systems) and solar-thermal systems, when the energy is used for space heating, space cooling or water heating. The amount of the credit is equal to 50% of the first $25,000 of the cost of each system, including installation costs (unless the taxpayer is installing the system). The credit must be fully claimed in the taxable year in which the system is installed and placed in service, or the year in which the residential property is sold if the system is installed on a new home or apartment building. Any excess credit which exceeds the taxpayer's liabilities for that year shall be treated as an overpayment, and the Louisiana Department of Revenue will issue a refund for the remaining amount within one year of receiving the claim.

For photovoltaic (PV) systems, the tax credit applies to AC or DC generation systems which are grid-connected, net-metered systems (with or without battery backup) or stand-alone systems. Eligible wind energy systems include AC or DC electric generation and mechanical wind systems. Solar thermal systems must be used for the primary purpose of heating water (including pool heating), space heating or space cooling.

Electrical equipment must be UL-listed and installed in compliance with all applicable building and electrical codes. Solar thermal equipment must be certified to SRCC OG-300 by either SRCC or by listing agency such as International Association of Plumbing and Mechanical Officials (IAPMO) and installed in compliance with all applicable building and plumbing codes. Installations must be performed by a licensed contractor, the owner of the residence, or by a person who has received certification by a technical college in the installation of such systems. In order to claim a tax credit for a wind or solar energy system all components must be installed at the same time as the system.

This tax credit may be combined with any federal tax incentive, but it may not be combined with any other state tax incentive. Whenever additional incentives such as cash rebates, prizes or gift certificates are offered in addition to the tax credit, the eligible cost must be reduced by the value of the incentive received.

NOLA Wise is a comprehensive residential and commercial energy efficiency program for existing buildings in New Orleans. Administered by Global Green USA, in partnership with the City of New Orleans, the Department of Energy, and the Southeast Energy Efficiency Alliance, NOLA Wise offers project management services to home owners to improve the efficiency of their properties by 15% or more. Tools provided include access to incentives through Entery's Energy Smart program, obtaining other available credits and rebates, and financing assistance options through Fidelity Homestead Savings Bank's Energy Efficient Loans.

The Energy Efficient Loans are available for qualifying properties located in Orleans Parish. These loans are subject to both credit approval and NOLA Wise program requirements.

As of October 2012, unsecured Energy Efficient Loans are available from $3,000 – $15,000 with 3.75% - 10.385%* APR to qualified applicants. Unsecured loans can be repaid in 1, 3, 5 or 7 year terms. Home equity secured loans are available from $15,001 - $25,000 with 5.24% - 6.288%* APR to qualified applicants. Secured loans can be repaid in 5 or 10 year terms. No down payments is required for either unsecured or secured loans, and an additional 0.25% discount on interest is available if automatic payment is setup with a Fidelity checking account.

*More information on loan requirements, interest rates and repayment terms may be found on the Fidelity Energy Efficient Loan web page.

This program is part of the U.S. Department of Energy's (DOE) Better Buildings Program. The DOE has awarded over $500 million in federal funds to more than 40 states, local governments, and organizations to administer local programs targeting a variety of building types. Combined, these local programs are expected to improve the efficiency of more than 170,000 buildings through 2013 and save up to $65 million in energy costs annually.

The Shreveport Energy Efficiency (SEED) program, offered by the City of Shreveport, is intended to complement and enhance the existing Louisiana Home Energy Rebate Option (HERO) program. SEED offers professional energy audit buy-downs and low-interest loans for qualifying retrofits of residential buildings. These incentives are intended to assist in raising program awareness, applicant participation, and diminish costs for improvements.

The SEED program decreases the major cost of the energy audit to Shreveport residents. Energy Audit procedures are performed by the HERO program. Measures which may be eligible for an incentive include air duct improvements, ceiling insulation, building envelope improvements and HVAC replacements.

Low-interest loan parameters based upon principal borrowed*:

• $3,000  - $6,000: Unsecured, Max 48 months with 2.9% interest to borrower
• $6,001 - $9,000: Agreement not to encumber, Max 84 months with 4.99% interest to borrower
• $9,001 - $15,000: First or second mortgage with max loan to value 100%, max 120 months with 5.49% interest to borrower

*Other factors may weigh into the calculation of interest rates. Please contact the SEED program lending partner to personalized rates.

Note: The Federal Housing Financing Agency (FHFA) issued a statement in July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local PACE programs have been suspended until further clarification is provided.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Louisiana has authorized certain local governments to establish such programs, as described below. (Not all local governments in Louisiana offer PACE financing; contact your local government to find out if it has established a PACE financing program.)

In July 2009, Louisiana legislators enacted SB 224 that enabled local governments to create a Sustainable Energy Financing District (SEFD) via ordinance or resolution. Once established, the owner of any immovable residential or commercial property may consent to include a property in the SEFD and execute a "cooperative endeavor agreement" with the district to receive financing for energy improvements. An owner's consent may be given before or after the initial creation of the district, and the district does not have to be contiguous.

In 2010, Louisiana legislators enacted HB 973 that provided financing qualifications and restrictions for energy efficiency improvement or renewable energy improvement loans. These include:

• limiting the total amount borrowed by property owners to 10 percent of the reasonable expected fair market value of the property
• equity must be available in the property, meaning the loan-to-value ratio cannot exceed 100%
• maximum assessment amount per year shall not exceed the amount of the principal and interest for said year
• property owners must be current on all outstanding mortgages and demonstrate ability to repay loan
• energy audit must be conducted and reviewed by the district prior to finance approval
• the SEFD must make written verification on residential properties that improvements were installed and work is completed prior to loan fund disbursement
• work must be performed by qualified contractors, subcontractors and tradesmen
• for loans over $100,000 a written notice must be sent to the mortgagee regarding the proposed program loan. The mortgagee then has 30 to approve or deny proposed program loan. (failure of mortgagee to provide written notice of ruling results in procession of loan)

A SEFD may borrow money, issue bonds or obligations, and pay for the bonds from assessments against property. Loan terms will be decided by the governing body of the district, including interest rates, administrative fees, and maximum loan amounts. The district is permitted to provide a source of revenue for retrofitting and installing improvements, products, systems, devices, or interacting groups of devices installed behind the meter of residential and commercial buildings that conserve energy or produce energy from renewable resources. Eligible technologies are determined locally, but may include:

• Insulation in walls, roofs, floors, foundations, and heating/cooling distribution systems;
• Storm and multi-glazed windows and doors;
• Heat absorbing/reflective glazed and coated window and door systems, additional glazing, reductions in glass area, and other energy-efficient window and door systems;
• Automatic energy control systems;
• HVAC system upgrades and replacements;
• Caulking and weather stripping (up to $1,500);
• Daylighting and efficient lighting; and
• Energy-recovery systems.

Renewable-energy improvements that interfere with a right held by a public utility regulated by the Louisiana Public Service Commission are not eligible.

New Orleans plans to create a Sustainable Energy Financing District with the help of a "special projects" grant from the U.S. Department of Energy SunShot Initiative.

Louisiana provides a tax credit for the purchase and installation of solar and wind energy systems purchased and installed on or after January 1, 2008. The credit may be applied to personal, corporate or franchise taxes, depending on the entity which purchases and installs the system, but the system must be installed at either a residence or a residential rental apartment complex to be eligible. HB 858, enacted in July 2009, extended the tax credit to taxpayers that purchase and install systems rather than only the owners of the residential property. This legislation also clarifies that only one credit can be taken per system, so if the property is sold, the taxpayer who originally claimed the credit must disclose this, as the new owner will not be eligible for another tax credit on the same system.

The tax credit may be applied both to solar-electric systems (photovoltaic systems) and solar-thermal systems, when the energy is used for space heating, space cooling or water heating. The amount of the credit is equal to 50% of the first $25,000 of the cost of each system, including installation costs (unless the taxpayer is installing the system). The credit must be fully claimed in the taxable year in which the system is installed and placed in service. Any excess credit which exceeds the taxpayer's liabilities for that year shall be treated as an overpayment, and the Louisiana Department of Revenue will issue a refund for the remaining amount within one year of receiving the claim.

For photovoltaic (PV) systems, the tax credit applies to AC or DC generation systems which are grid-connected, net-metered systems (with or without battery backup) or stand-alone systems. Eligible wind energy systems include AC or DC electric generation and mechanical wind systems. Solar thermal systems must be used for the primary purpose of heating water (including pool heating), space heating or space cooling.

Electrical equipment must be UL-listed and installed in compliance with all applicable building and electrical codes. Solar thermal equipment must be certified to SRCC OG-300 by either SRCC or by listing agency such as International Association of Plumbing and Mechanical Officials (IAPMO) and installed in compliance with all applicable building and plumbing codes. Installations must be performed by a licensed contractor, the owner of the residence, or by a person who has received certification by a technical college in the installation of such systems. In order to claim a tax credit for a wind or solar energy system all components must be installed at the same time as the system.

This tax credit may be combined with any federal tax incentive, but it may not be combined with any other state tax incentive. Whenever additional incentives such as cash rebates, prizes or gift certificates are offered in addition to the tax credit, the eligible cost must be reduced by the value of the incentive received.

In Louisiana, any equipment attached to an owner-occupied residential building or swimming pool as part of a solar energy system is considered personal property that is exempt from ad valorem taxation. The value of a solar energy system will not be included in the assessment of such buildings or swimming pools.

A solar energy system is defined as "any device that uses the heat of the sun as its primary energy source and is used to heat or cool the interior of a structure or swimming pool, or to heat water for use within a structure or swimming pool." Solar energy systems include but are not limited to systems utilizing solar collectors, solar cells and passive roof ponds.

The Home Energy Loan Program (HELP), administered by the Louisiana Department of Natural Resources (DNR), allows homeowners to get a five-year loan to improve the energy efficiency of their existing home. DNR subsidizes half of the financing for energy efficiency improvements at a low interest rate to participating lenders, up to a maximum DNR subsidy of $6,000. Each participating lender sets the maximum loan amount offered to homeowners, as well as the interest rate that is charged to the homeowner. A homeowner can qualify for an energy improvement loan in two ways – either through an energy audit in which an Energy Home Rater makes recommendations, or by choosing pre-approved home improvements as designated by the program.

In order to participate, a homeowner must contact a participating lender directly and must complete a credit application. The HELP home improvement loans may either be consumer loans or second mortgages; this is left to the discretion of the participating lender. A list of participating lenders, pre-approved home improvements and limits to participation are available on the program web site.

A homeowner cannot participant in both the Louisiana Home Energy Rebate Option (HERO) Program and the HELP program at the same time, and can only participate one time per property. See guidelines on maximum times of participation.

NOTE: All HERO program funding has been allocated as of December 6, 2012. Important dates related to the closure of the program have been announced. Please see summary below for more information.

The Home Energy Rebate Option (HERO) - Existing Homes Program is offered by the Louisiana Department of Natural Resources (DNR) for residents to receive cash rebates for energy efficient improvements to existing homes that achieve a minimum of 30% energy reduction. The incentive amount is based on two factors, either the Cost of Energy Savings determined by comparing the pre-improved home to the post-improved home over the useful life of the added improvements* or the cost of the energy efficiency improvements. The cash rebate is 20% of the lesser of the two amounts up to a maximum rebate of $2,000.

Owners of an existing single-family homes and  two-unit residences, are eligible to apply under this program. In order to qualify, residents must make improvements that result in an annual energy savings of at least 30%. Each residence must be metered separately. In addition, certain improvements are assigned point values, which are listed on the program web site. In order to qualify, residents must incorporate any of these improvements with point values that add up to 2 to participate and 6 to receive the maximum rebate incentive.

All applications must be submitted prior to the start of any renovation. The homeowner contacts a certified home energy rater listed on the Louisiana DNR site and, pending funding, gets a preliminary rating containing proposed improvements. After the home has been rated, the homeowner must make the improvements within six months. Following a final verification rating by the home rater, the HERO Program will issue a rebate to the homeowner.

HERO Program rebates are taxable and Participants will receive a 1099-MISC, Miscellaneous Income Form from the State of Louisiana for the year in which the rebate is received.

While the HERO Program is currently ongoing, it is scheduled to sunset over the course of 2013. Please see the list of important dates below for impending deadlines.

• December 6, 2012 - last day to submit a preliminary rating that has a (6) month guarantee of funding
• December 7, 2012 - preliminary ratings submitted from this date through May 2013 are only guaranteed funding until June 10, 2013
• June 10, 2013 - last day to submit finals under the HERO Program
• June 11, 2013 - HERO Program ends

*This amount is based upon an Energy Efficiency Premium HERS Rating system

 **A homeowner cannot participant in both the Louisiana Home Energy Loan Program (HELP) and the HERO program at the same time, and can only participate one time per property. See guidelines on maximum times of participation.

Louisiana's Cleco Power offers a rate discount for residential customers who build homes that meet the Power Miser Program specifications. A customer that is building a new home that meets the standards will receive a rate discount of 10% between November and April for the first five years they live in the house.

Power Miser Standards include:

• Air Conditioner/Heat Pump has minimum SEER rating of 14
• Metal ductwork has 2 inches foil-backed or vinyl-backed insulation
• Non-metal ductwork made out of insulating material with branch duct R-6 and plenum R-4
• Electric water heater is well-insulated
• Floor and wall insulation with minimum rating of R-13
• Ceiling insulation with minimum rating of R-30
• Kitchen and laundry equipment must be all-electric
• Adequate attic ventilation
  
  More specifications can be found at the program web site. Within 60 days after the home is built, the customer must submit a verification form to obtain the rate discount.

DEMCO, a Touchstone Energy Cooperative, provides residential customers who have a qualified Touchstone Energy Home, a rebate of up to $0.10 per square foot of living area for electric heat pumps and $125 for electric water heaters. The special one-time rebate is not a permanent offer.

The main Touchstone Energy Home features are:
• R-19 composite wall insulation
• R-30 ceiling insulation
• Attic ventilation
• R-19 floor insulation over crawl spaces
• Double pane windows or low-E windows
• Metal insulated door or solid core wood door
• Infiltration control to help prevent air from leaking into the home
• Exhaust systems in bathrooms and kitchen
• An exterior house wrap
• Metal duct systems with minimum 3” insulation wrap or locate duct in conditioned space
• An energy-efficient electric water heater from DEMCO
• A high-efficiency electric heat pump

Guidelines for building a Touchstone Energy Home and more detailed information are available online.

The Commercial and Industrial Solutions Program is an energy efficiency program designed to help business customers understand and make energy efficiency improvements in eligible facilities. The program provides educational and incentive resources through a free energy evaluation and lighting, HVAC, and motor measures eligible for an incentive.  All commercial lighting, motor, and heating, ventilation, and air conditioning contractors that serve Entergy New Orleans customers are eligible to apply to participate in this program. To participate, customers may either call a partnering contractor to schedule an evaluation of energy efficiency opportunities in an eligible facility or call the Energy Efficiency Solutions Center at 1-866-721-0249. A list of approved contractors may be found on the program web site listed above.

Entergy New Orleans has designed an incentive program to help residential customers understand and make energy efficiency improvements in eligible homes. Incentives are geared towards both individual measures and whole home upgrades. Individual equipment incentives include central AC systems, heat pumps, HVAC system tune-ups, new home construction, comprehensive measures, heat pump water heaters and new windows.

The Home Performance with EnergyStar Program provides ENO residential customers with home energy assessments, recommendations for energy savings and incentives towards the cost of those upgrades. A range of insulation, air sealing, ductwork, solar window screens and radiant barriers are eligible for incentives through this program. Contact Entergy New Orleans for more information on the details of this program.

Entergy New Orleans offers a Solar Water Heater Rebate pilot program designed to help residential customers make energy efficiency improvements. Rebates will be offered on a first-come, first-served basis and reflected on the invoice as a discount. All systems must be OG 300 rated and incentive amount is based on kWh savings. Walk-through energy assessments are available for a discounted rate through partnering energy consultants. Entergy New Orleans residential customers living in Orleans Parish are eligible for this program.

 Visit the website above to find a Solar Water Heater contractor. The contractor will perform a site assessment and complete a Shading Report; and provide an estimate for a qualifying system. The contractor will also fill out and submit a rebate application to Energy Smart for approval prior to installation; Energy Smart will perform pre and post-installation inspections to verify equipment.