Solar rooftop systems
Solar rooftop systems owned by solar companies and leased to homeowners are not “immovable” property and, therefore, the homeowners leasing them must pay a 4% sales tax on the rents, Louisiana said in a ruling in late June. The ruling is Revenue Ruling No. 13-006.
Louisiana allows a 50% tax credit on residential solar systems, up to a maximum credit of $12,500. The credit drops to 38% of the system cost for systems installed after 2013, up to a maximum of $9,500. Homeowners sometimes assign the tax credit to the solar company leasing them the systems. The ruling said that in such cases, the assigned tax credit is considered additional rent to the solar company and is also subject to the sales taxes.