Solar Credit Frequently Asked Questions

  1. Who is eligible to receive a solar energy system tax credit under Act 413 of the 2017 Regular Session of the Louisiana Legislature?
  2. My solar credit was denied due to the cap, do I need to file a new claim?
  3. I filed a claim, but did not receive a letter specifically about the solar energy credit. What do I need to do?
  4. I received a letter stating my credit has priority in the Fiscal Year 2017-2018 cap but I have not been paid. What do I do?
  5. I purchased a qualifying system that was installed on or before December 31, 2015, but have not filed a claim for the credit. What do I do?
  6. How do I file a credit claim under Act 413?
  7. Do I have to file the return claiming my credit electronically?
  8. What is the deadline to file a claim under Act 413?
  9. What supporting documentation is required for a claim to be considered complete?
  10. When will the credit be refunded if approved under Act 413?
  11. How much money will I get if my credit is approved under Act 413?
  12. Will I be paid interest if my claim is approved under Act 413?
  13. What is meant by the statement “would have been denied” in Act 413?
  14. If I’m contacted to submit additional documentation, where should I send it?
  15. Will approved credits be refunded to me if I owe money to LDR?
  16. How does Act 413 affect my lawsuit or case filed with the Louisiana Board of Tax Appeals?
  17. I have a balance due on my tax return because my solar credit was disallowed due to the original credit cap. Do I have to pay the balance due even though my credit has been approved for payment under Act 413?
  18. My claim was originally denied and I filed an appeal with the Board of Tax Appeals. Will I receive a refund of filing fees that I paid to the Board of Tax Appeals?
  19. I received or may receive a refund for my solar credit claim. Is my refund taxable?
  20. Act 413 of the 2017 Regular Session provided a three or, if necessary, a four year payout schedule. The fourth payment depended on the amount of claims received. Will there be three or four installment payments?
  21. On December 18, 2017, the Nineteenth Judicial District Court in Baton Rouge ruled that Act 131 of the 2015 Regular Session was unconstitutional. What does this mean for me?
  22. As of January 5, 2017, I have not received my first installment payment. When will I receive it?
  23. I received my first installment. The amount was not one-third of the total solar credit claim. Why?

1. Who is eligible to receive a solar energy system tax credit under Act 413 of the 2017 Regular Session of the Louisiana Legislature?

Act 413 provides additional funding for taxpayers who purchased and installed a qualified solar energy system on or before December 31, 2015. Taxpayers must have already submitted a properly filed claim or must submit a properly filed claim before September 1, 2017. Finally, all required supporting documentation must be received by LDR on or before November 1, 2017.

2. My solar credit was denied due to the cap, do I need to file a new claim?

Taxpayers that received a certified denial letter due to the cap do not need to file a new claim.

LDR will send these taxpayers a credit status update letter on July 6, 2017. These letters will provide notification that their originally filed solar credit claim will be reviewed for funding under Act 413 and also inform them that no new claim needs to be submitted.

3. I filed a claim, but did not receive a letter specifically about the solar energy credit. What do I need to do?

Taxpayers who filed a claim but did not receive a certified denial letter due to the cap limit or the claim status update letter from LDR dated July 6, 2017, must file a claim before September 1, 2017, under Act 413. See FAQ #6 for specific instructions on how to submit a claim.

4. I received a letter stating my credit has priority in the Fiscal Year 2017-2018 cap but I have not been paid. What do I do?

Taxpayers who received a letter stating their credit has a priority in Fiscal Year 2017-2018 do not need to do anything. These taxpayers are already scheduled to receive their credits in August through September of 2017.

5. I purchased a qualifying system that was installed on or before December 31, 2015, but have not filed a claim for the credit. What do I do?

Taxpayers who have not yet filed a claim must do so before September 1, 2017. See FAQ #6 for specific instructions on how to submit a claim.

6. How do I file a credit claim under Act 413?

Taxpayers who received a certified denial letter due to the cap and a claim status update letter from LDR dated July 6, 2017 do not need to file a new claim.

All other taxpayers with a qualifying system installed on or before December 31, 2015, must do the following to submit a claim:

  • Claim credit code 64F on an electronically filed return before September 1, 2017. Returns can be filed electronically by clicking here.
    • No paper returns will be accepted.
  • Submit all required supporting documentation on or before November 1, 2017.

Taxpayers are strongly encouraged to file their claims and provide supporting documentation early to allow time to resolve any issues or provide any missing information before the deadlines stated above.

7. Do I have to file the return claiming my credit electronically?

Taxpayers with a qualifying system must electronically file an original or amended return before September 1, 2017. See FAQ #6 for specific instructions on how to submit a claim.

8. What is the deadline to file a claim under Act 413?

Act 413 requires that claims must be filed with the department before September 1, 2017. See FAQ #6 for specific instructions on how to submit a claim.

9. What supporting documentation is required for a claim to be considered complete?

To be considered a complete claim, the supporting documentation must include:

  • A completed Form R-1086 for the corresponding tax period.
  • Proof of purchase in the form of an itemized receipt, paid invoice or a copy of the contract signed by the taxpayer demonstrating either full payment or payment through financing.
  • All other documentation requested by the department pursuant to the requirements of LAC 61:I.1907.

10. When will the credit be refunded if approved under Act 413?

Act 413 provides that all eligible taxpayers be paid out in three equal installments over three fiscal years, beginning with Fiscal Year 2017-2018 and ending with Fiscal Year 2019-2020. However, the Act limits funding to $5 million dollars per fiscal year. If the total amount of eligible claims exceeds the $5 million dollar per fiscal year credit cap, qualifying taxpayers will receive their pro rata share of the $5 million dollar credit cap for each of the three fiscal years. The remainder of any outstanding credit due will be issued in the fourth year or Fiscal Year 2020-2021.

Installment refund 1:     December 2017 – January 2018

Installment refund 2:     August 2018 - September 2018

Installment refund 3:     August 2019 - September 2019

Installment refund 4, if required:     August 2020 - September 2020

Example 1 Total Claims is less than $15 million: If the total amount of approved credits pursuant to Act 413 is less than or equal to $15 million per year, all eligible taxpayers will receive three installment refunds equal to one-third of their credit. A claim for $10,500 would be paid out in three payments of $3,500.

Example 2 Total Claims exceeds $15 million: If the total amount of approved credits is $16.5 million, all eligible taxpayers will receive their prorata share of the $5 million allowed in the first three years and the remainder of their credit in the fourth year. In this example, a taxpayer with a $10,500 credit would receive three installments of $3,181.82 and the remaining $954.54 in the fourth year.

11. How much money will I get if my credit is approved under Act 413?

Act 413 provides full funding for all qualified systems on properly filed claims. See FAQ #10 for details on the claim payout schedule to find out when you will receive your credit.

12. Will I be paid interest if my claim is approved under Act 413?

Act 413 provides that interest will be paid as described below:

  • The fiscal year 2018 installment will include interest from 12/30/17 to the date of refund.
  • The fiscal year 2019 installment will include interest from 12/30/18 to the date of refund.
  • The fiscal year 2020 installment will include interest from 12/30/19 to the date of refund.
  • If required, the final installment in fiscal year 2021 will include interest from 12/30/20 to the date of refund.

13. What is meant by the statement "would have been denied" in Act 413?

The "would have been denied" language allows taxpayers with qualifying systems who have not previously filed a claim to submit a claim.

14. If I’m contacted to submit additional documentation, where should I send it?

Supporting documentation can be faxed to (225) 231-6238 or mailed to: Taxpayer Compliance Division, P.O. Box 66362, Baton Rouge, LA 70896-6362 no later than November 1, 2017. Taxpayers are strongly encouraged to provide supporting documentation early to allow time to resolve any issues or provide any missing information before the final deadline.

15. Will approved credits be refunded to me if I owe money to LDR?

All existing balances due to LDR must be satisfied before a refund for solar energy credits will be issued. The installment refunds of the credit will be reduced until all outstanding balances are paid.

16. How does Act 413 affect my lawsuit or case filed with the Louisiana Board of Tax Appeals?

Taxpayers may seek guidance from their legal counsel regarding the status of lawsuits.

17. I have a balance due on my tax return because my solar credit was disallowed due to the original credit cap. Do I have to pay the balance due even though my credit has been approved for payment under Act 413?

Yes, the entire balance due including any accrued interest and penalties should be paid. If the balance is not paid, interest and penalties will continue to accrue on the balance. Additionally, the account may be referred to collections. Taxpayers who are unable to pay their full balance may request an installment payment plan using Form R-19026. Taxpayers that make the required monthly installment payments on an approved installment plan will not be subject to collection actions such as driver’s license suspension or bank account levies.

When the solar credit installment payments are issued according to the schedule described in Question 10, credits will be used to pay any outstanding tax, penalty or interest owed to LDR before any credit is refunded.

18. My claim was originally denied and I filed an appeal with the Board of Tax Appeals. Will I receive a refund of filing fees that I paid to the Board of Tax Appeals?

Generally, deposits and filing fees paid to the Board of Tax Appeals are not refunded. However, Act 91 of the 2018 Regular Session provides that deposits and filing fees shall be refunded to claimants as an addition to the second installment payment which is scheduled for August and September 2018. Unpaid deposits and filing fees shall be waived by the Board of Tax Appeals. Only deposits and filing fees related to an appeal regarding the credit cap disallowance are eligible for refund or waiver. If a claimant is ineligible for the three installment payments under Act 413 of the 2017 Regular Session, then the claimant is ineligible for refund or waiver of deposits and filing fees. If a claimant has an outstanding balance with the Department of Revenue, the refund of deposits and filing fee will be reduced to satisfy the unpaid balance.

19. I received or may receive a refund for my solar credit claim. Is my refund taxable?

Refunds attributable to solar credit claims are generally taxable and should be reported on the recipient’s federal tax return in the year the refund is received. Consult your tax advisor on the proper treatment of refunds of solar credit claims.

20. Act 413 of the 2017 Regular Session provided a three or, if necessary, a four year payout schedule. The fourth payment depended on the amount of claims received. Will there be three or four installment payments?

Based on the amount of claims received and approved, three installment payments of one-third each will be issued. The refunds will be mailed to your current address on file and sent first class mail through the U.S. Post Office in the form of a paper check or by direct deposit. If you have a change of address, please update your address here.

21. On December 18, 2017, the Nineteenth Judicial District Court in Baton Rouge ruled that Act 131 of the 2015 Regular Session was unconstitutional. What does this mean for me?

In the case of Justin Ulrich, Gwen Ulrich, Raymond and Pam Alleman, Individually and on Behalf of All Others Similarly Situated vs. Secretary of the Department of Revenue, the Court held that Act 131 was unconstitutional. Act 131 established annual caps on the total amount of solar credits allowed on tax returns. The Court did not rule on the constitutionality of Act 413 of the 2017 Regular Session which provided a three (or four) year payout of those credits affected by the caps established by Act 131. The Court’s judgment of unconstitutionality is on appeal to the Louisiana Supreme Court. Until the Louisiana Supreme Court issues a final ruling, the Department will continue with the established three year payout schedule pursuant to Act 413.

22. As of January 5, 2017, I have not received my first installment payment. When will I receive it?

During November and December 2017, the Department finalized approval of all qualifying claims. The first installment was refunded by paper check or direct deposit during December 2017 and early January 2018. If you have not received your first installment by January 16, 2018, please contact the Department at (225) 219-2270 for the status of your refund.

23. I received my first installment. The amount was not one-third of the total solar credit claim. Why?

The solar tax credit is a refundable credit. If you owed tax on your original tax return, your solar tax credit was reduced by the amount of tax you owed. Refer to your original or amended return for more information. Additionally, refunds may be offset for other amounts due to the Louisiana Department of Revenue, Internal Revenue Service, or for certain garnishments to other agencies. For example, if your solar credit was $12,500.00, but you owe $1,000.00 to the Internal Revenue Service, your first installment payment will be$3,166.67 instead of $4,166.67. The $1,000.00 that was withheld from your refund will be sent directly to the Internal Revenue Service.


Revision History: July 26, 2017 (clarified the date claims are due in Questions 1, 3, 5, 6, 7 and 8); August 21, 2017 (added Question No. 17); October 13, 2017 (added Question 18,19); January 8, 2018 (added questions 20, 21, 22, 23); July 9, 2018 (updated answer to Question No. 18 due to new legislation in Act 91 of the 2018 Regular Session).