Tip:
Highlight text to annotate it
X
[NARRATOR] On the roof of his home in Baton Rouge, Herb Sumrall is inspecting an innovation
that’s already saving money every month, solar panels.
[Herb Sumrall, Homeowner] My wife and I, when we built the house, were pretty much into
solar conservation. So, we’ve done a bunch of things over the years and this seemed like
the appropriate thing to do and the appropriate time.
[NARRATOR] Solar panels make electricity from sunlight and Sumrall’s power bill is a fourth
of what it used to be. Plus, the cost of installing this array will be significantly offset when
he files his state and federal taxes.
[William Little, Louisiana Department of Revenue] The Solar and Wind Power Tax Credit gives
a taxpayer a refundable credit for 50 percent of the first 25 thousand dollars of the costs
associated with installing a wind or solar powered energy system. That is the state tax
credit. The analogous federal tax credit is 30 percent of the same installation costs.
Adding these two together, you get 80 percent of the installation costs. Legislative leaders
both in Washington and the state level; are trying to generate energy efficiency at the
home residence level but to spur creation of the industry in the solar and wind power
field.
[SUMRALL] So, it makes it very profitable and it encourages you to do the right thing
– to do it.
[NARRATOR] This is a tax credit, not just a deduction. It can be claimed for new installations
or when an individual purchases a new home or apartment project with the system already
installed. For more information on the income tax credit for wind or solar energy systems,
visit revenue.louisiana.gov.