Performance Building Consulting / Byrd Energy

New Louisiana Tax Credit

Effective January 1, 2008 Applies to residential and apartment projects. Covers solar hot water, solar electric, solar pool heaters and wind generators. 50% tax credit up to maximum system cost of $25,000. Allows multiple systems on same building, thus basically unlimited credit. Treated as overpayment at end of year and state writes check. No expiration date.

Existing Federal Tax Credit

Residential covers solar hot water and solar electric. Solar pool heaters excluded. 30% tax credit with no maximum. Unused credit can be carried forward. Limited to one solar hot water and one solar electric credit in any tax year.

Commercial covers solar hot water and solar electric. 30% tax credit unlimited. Tax credit basis can be increased by developmental and financing costs. Unused credit can be carried forward. Accelerated 5-year depreciation on 85% of tax credit basis.