Blank Louisiana R 1086 PDF Form

Blank Louisiana R 1086 PDF Form

The Louisiana R 1086 form is a tax credit application for individuals and businesses that have installed solar energy systems in Louisiana. This form allows taxpayers to claim a credit against their income tax for the purchase and installation of solar electric systems. To take advantage of this opportunity, fill out the form by clicking the button below.

The Louisiana R 1086 form is an essential document for individuals and businesses looking to claim the solar energy income tax credit for installations completed in 2017. This credit, which can be a significant financial benefit, is designed to encourage the use of solar energy systems in the state. To utilize this form, taxpayers must provide detailed information about their solar energy systems, including the total available credit and specifics about the installation, such as the contractor's name and license number. The form also requires taxpayers to complete a worksheet for each solar system, calculating the eligible costs based on the installation and equipment expenses. Notably, the tax credit allows for up to 38 percent of the first $20,000 of eligible costs, which can be claimed alongside federal credits. However, it’s crucial to understand the limitations, such as the prohibition against claiming other state benefits for the same property. To ensure compliance, the form includes declarations and sworn statements from both the property owner and the licensed installer, affirming the accuracy of the information provided. By carefully following the guidelines outlined in the R 1086 form, taxpayers can effectively navigate the process of claiming their solar energy tax credits.

Document Sample

R-1086 (1/18)

 

 

 

 

 

 

FILING PERIOD

 

 

 

 

 

S o l a r E n e rgy I n c o m e Ta x C re d i t fo r

2017

 

 

 

 

 

I n d i v i d u a l s a n d B u s i n e s s e s

 

 

 

 

 

 

 

 

Individual

Business

PLEASE PRINT OR TYPE

Name of Taxpayer/Entity Claiming Credit

Social Security No./Entity Louisiana Revenue Account No.

Name of Taxpayer’s Spouse (if joint individual income tax return)

Spouse’s Social Security No. (if joint individual income tax return)

Taxpayer Residence Address (if individual income tax return) or Business Address

City

State ZIP

 

 

 

Total Available Credit

 

 

1

Complete the worksheet, found on page 2, for each solar energy system. Add the

1

 

amounts from Line 12 of each worksheet and enter the total.

 

 

 

 

 

 

 

 

 

Share of qualifying tax credit from partnerships, trusts or small business corporations

 

 

 

(Number of units ____________ )

 

 

2

Name of Entity:

 

 

2

 

 

 

 

 

Louisiana Revenue Acct No:

 

 

 

 

 

 

 

 

 

3

Total Credit Available to the taxpayer (Add Lines 1 and 2.)

3

 

 

 

 

 

 

 

 

LA R.S. 47:6030 provides for a credit against income tax for the purchase and installation of a solar electric system (“system”). The credit may be claimed by a third-party owner through a lease with the owner of a single-family detached residence located in this state. However, only one tax credit with respect to each residence is allowed and no other tax credit will be allowed for any other system installed at that residence. See Revenue Information Bulletins 13-026 and 15-026 and Louisiana Administrative Code (LAC) 61:I.1907 for additional information regarding additional requirements and restrictions.

System components purchased on or after July 1, 2013, must be compliant with the “Buy American” requirements of the federal American Recovery and Reinvestment Act of 2009. See Revenue Information Bulletin 13-013 for more information.

The tax credit for a leased system installed in 2017 is equal to 38 percent of the first $20,000 of eligible costs. For the purpose of determining the cost basis of the credit for a leased system, the eligible cost is $2.00 per watt limited to six kilowatts.

If the taxpayer received this credit through an interest in a partnership, trust, or small business corporation, please retain copies of the Schedule K-1 or other documents that support your share of the distributed credit amount entered on Line 2 above.

This credit may be used in addition to any federal credits earned for the same system, but the taxpayer is prohibited from using any other state tax benefit for property for which the credit is claimed.

Declaration

I declare that to the best of my knowledge of all available information, this refund claim is true and complete and complies with all statutes, rules and regulations, and any other policy pronouncements related to the solar energy income tax credit.

Signature of Taxpayer, Entity Officer or Other (for other, attach power of attorney, Form R-7006)

Date (mm/dd/yyyy)

Signature of Spouse (if joint return)

Date (mm/dd/yyyy)

Please complete a separate worksheet and supplemental information sheet for each solar energy system for which you are requesting credit. Attach each worksheet to page 1.

1

R-1086 (1/18)

 

 

 

 

 

 

S o l a r E n e rgy I n c o m e Ta x

 

 

 

 

 

FILING PERIOD

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

Leased Systems (Credit Code 74F)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Worksheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PLEASE PRINT OR TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Taxpayer/Entity Claiming Credit

 

Social Security No. /Entity Louisiana Revenue Account No.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Taxpayer’s Spouse (if joint individual income tax return)

 

Spouse’s Social Security No. (if joint individual income tax return)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Address of Location Where System Installed

 

City

 

State

ZIP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date the Installation of the Energy System was Completed

________________________________________

(mm/dd/yyyy) in a Louisiana Residence

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractor’s Name

 

Contractor’s Louisiana License Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Computation of the Credit

 

 

 

 

 

1

Cost of new system equipment

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

Cost of new system installation

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

Taxes associated with new system

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

Total (Add Lines 1 through 3.)

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

Enter the smaller of $20,000 or the amount on Line 4.

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

Enter the sum of the nameplate kW of all of the photovoltaic panels in the system.

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

Multiply Line 6 by 1,000.

 

 

 

 

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

Enter the smaller of $6,000 or the amount on Line 7.

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

System cost per watt

 

 

 

 

 

 

9

 

$2.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Multiply Line 8 by Line 9.

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

Enter the smaller of Line 5 or Line 10.

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

Multiply Line 11 by 38% (.38). This is your credit.

 

 

 

 

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

R-1086 (1/18)

 

 

 

 

 

 

Solar Energy

 

 

FILING PERIOD

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

Income Tax Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Information

 

 

 

 

 

 

 

 

 

 

 

 

 

PLEASE PRINT OR TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Taxpayer/Entity Claiming Credit

 

Social Security No./ Louisiana Revenue Account No.

 

 

 

 

 

 

 

 

 

 

 

Physical Address of Location Where System Installed

 

City

State

ZIP

 

 

 

 

 

 

 

 

 

LA

 

 

 

 

 

 

 

 

 

 

 

 

Name of Taxpayer’s Spouse (if joint return)

 

Spouse’s Social Security No.

 

 

 

 

 

 

 

 

 

 

 

 

 

System Information

Total nameplate listed kW of all installed panels:

Provide the make, model, and serial number of generators, alternators, turbines, photovoltaic panels, and inverters for which a credit is being applied.

Make

Model

Serial Number

Attach Additional Sheets if Needed

LAC 61:I.1907 requires certain information about the system be provided to determine eligibility for the credit. Below is a list of additional information required about the solar system. Failure to provide this information shall result in the disallowance of the credit.

1.A copy of the modeled array output report using the PV Watts Solar System Performance Calculator. The calculator was developed by the National Renewable Energy Laboratory and is available at the website www.pvwatts.nrel.gov. The analysis must be performed using the default PV Watts de-rate factor.

2.A copy of the solar site shading analysis conducted on the installation site using a recognized industry site assessment tool such as a Solar Pathfinder or Solmetric demonstrating the suitability of the site for installation of a solar energy system.

3.A copy of the installation contract signed by the taxpayer and a copy of the receipt or paid invoice detailing the amount of purchase.

3

R-1086 (1/18)

 

 

 

 

 

 

Solar Energy

 

 

FILING PERIOD

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

Income Tax Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Property Owner Declaration

 

 

 

 

 

 

 

 

 

 

 

 

 

PLEASE PRINT OR TYPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Taxpayer/Entity Claiming Credit

 

Social Security No./ Louisiana Revenue Account No.

 

 

 

 

 

 

 

 

 

 

 

Physical Address of Location Where System Installed

 

City

State

ZIP

 

 

 

 

 

 

 

 

 

LA

 

 

 

 

 

 

 

 

 

 

 

 

Name of Taxpayer’s Spouse (if joint return)

 

Spouse’s Social Security No.

 

 

 

 

 

 

 

 

 

 

 

 

 

This page must be signed by the owner of the property on which the solar system is installed.

I, the undersigned residential property owner, am the lessee of a solar energy system and may be entitled to claim the Louisiana solar energy income tax credit pursuant to R.S. 47:6030.

I understand and acknowledge my right to consult a tax professional prior to claiming any Louisiana state tax credit for which I may be eligible.

I understand and acknowledge that LAC 61:I.1907(F)(2) and (3) provide costs ineligible for inclusion under the tax credit. I understand that R.S. 47:6030(C)(1) explains that my “cost of purchase” or overall “costs” of a solar energy system cannot include any lease management fee or any inducement to lease a solar energy system.

I understand that an inducement is an incentive for me to lease a solar energy system. An inducement may be offered to me as a rebate, prize, gift certificate, trip, additional energy item or service, or any other thing of value given to me by the seller, installer, or equipment manufacturer as an incentive for me to lease a system.

Whenever marketing rebates or incentives are offered to me in return for a reduction in the lease price of the system or as an inducement to lease, the eligible cost under LAC 61:I.1907(F)(1) will be accordingly reduced by the fair market value of the marketing rebate or incentive that I receive.

Date (mm/dd/yyyy)

Last 4 Digits of SSN

Signature

_______ _______ _______ _______

Print Name

4

R-1086-B (1/18)

 

 

 

 

 

 

FILING PERIOD

 

 

 

 

 

Sworn Statements by Licensed

2017

 

 

 

 

 

Dealer and Installer

 

 

 

 

 

 

 

 

Pursuant to Revised Statute (R.S.) 47:6030(D)(3)(d), Form R-1086 shall contain the following sworn statements by the licensed dealer who leased the system and the licensed installer who installed the system. This page must be completed in its entirety and included with Form R-1086.

Residential Property where the Solar Energy System was Installed

Address

City

State

ZIP

To Be Completed by Dealer:

The undersigned is an authorized principal in _______________________________________________________, is licensed by the

Louisiana Board of Contractors as required by R.S. 47:6030, and certifies under penalty of law, particularly R.S. 14:202.2(A), that the

system leased to the homeowner of the residence located at ___________________________________________________ has a total

nameplate value of ___________________ kilowatts, that no solar dealer, solar installer, or installer affiliate financed the repayment

obligations, and that a reasonable good faith belief exists that the residence is eligible for the credit provided for in this Section in the

amount claimed on a Louisiana income tax return.

___________________________________________________

__________________________________

______________

Dealer’s Name (printed)

Dealer’s Name (signature)

Date

___________________________________________________

__________________________________

_______________

Dealer’s Louisiana License Number

Notary Public

Date

To Be Completed by Installer:

The undersigned is an authorized principal in ______________________________________________________________________,

is licensed by the Louisiana Board of Contractors as required by R.S. 47:6030, is a licensed installer, as required by R.S. 37:2156.3, and certifies under penalty of law, particularly R.S. 14:202.2(A), that the system installed at the residence located at ____________________

______________________________________________________ has a total nameplate value of _____________ kilowatts.

___________________________________________________

___________________________________

_______________

Installer’s Name (printed)

Installer’s Name (signature)

Date

___________________________________________________

___________________________________________________

Installer’s Louisiana License Number

Date the installation of the energy system was completed and placed in service

___________________________________________________

_______________

 

Notary Public

Date

 

5

File Specifics

Fact Name Description
Governing Law The Louisiana R 1086 form is governed by Louisiana Revised Statute 47:6030, which provides a tax credit for the purchase and installation of solar energy systems.
Credit Amount For systems installed in 2017, the tax credit equals 38% of the first $20,000 of eligible costs, with a maximum eligible cost of $2.00 per watt for systems limited to six kilowatts.
Eligibility Requirements To qualify for the credit, system components must comply with the "Buy American" requirements established by the federal American Recovery and Reinvestment Act of 2009.
Documentation Needed Taxpayers must provide supporting documents, such as installation contracts and output reports, to validate their claim for the solar energy income tax credit.

How to Use Louisiana R 1086

Filling out the Louisiana R 1086 form requires careful attention to detail to ensure accuracy and compliance with state regulations. After completing the form, it will be necessary to submit it along with any required attachments and supporting documents to the appropriate tax authority. Below are the steps to guide you through the process of filling out the form.

  1. Provide Taxpayer Information: Enter the name of the taxpayer or entity claiming the credit, along with the Social Security number or entity number, and the Louisiana Revenue Account number.
  2. Spouse Information: If filing jointly, include the name and Social Security number of the taxpayer's spouse.
  3. Address: Fill in the taxpayer's residence address or business address, including city, state, and ZIP code.
  4. Total Available Credit: Complete the worksheet on page 2 for each solar energy system. Add the amounts from Line 12 of each worksheet and enter the total on Line 1. If applicable, enter the share of qualifying tax credit from partnerships or trusts on Line 2.
  5. Entity Information: If claiming credit through an entity, provide the name of the entity and its Louisiana Revenue Account number.
  6. Total Credit Calculation: Add the total from Line 1 and Line 2 to find the total credit available to the taxpayer and enter it on Line 3.
  7. Declaration: Sign and date the declaration section, confirming that the information provided is true and complete. If filing jointly, the spouse must also sign and date this section.
  8. Worksheets and Attachments: Complete a separate worksheet and supplemental information sheet for each solar energy system for which you are requesting credit. Attach each worksheet to page 1 of the form.

Your Questions, Answered

What is the Louisiana R 1086 form?

The Louisiana R 1086 form is used to claim a tax credit for the purchase and installation of solar energy systems. This form is applicable for both individuals and businesses that have installed solar electric systems in the state of Louisiana. It is essential to complete this form accurately to ensure that you receive the tax benefits available under Louisiana law.

Who is eligible to claim the solar energy tax credit?

Eligibility for the solar energy tax credit extends to both individual homeowners and businesses that install solar energy systems in Louisiana. If you are leasing a system, you may still claim the credit, provided the system is installed on a single-family detached residence. However, only one tax credit is allowed per residence, and no other state tax credits can be claimed for additional systems installed at that same location.

What costs are eligible for the tax credit?

Eligible costs for the tax credit include:

  • The cost of new system equipment
  • Installation costs associated with the solar energy system
  • Taxes related to the purchase of the system

The total eligible cost is capped at $20,000 for the purpose of calculating the credit. Additionally, the cost basis for leased systems is determined at $2.00 per watt, limited to a maximum of six kilowatts.

How much is the tax credit?

The tax credit for a leased solar system installed in 2017 is 38% of the eligible costs, up to the first $20,000. This means that if your eligible costs are $20,000, you could receive a tax credit of up to $7,600. It’s important to follow the guidelines to ensure you calculate the credit correctly.

What documentation is required to support my claim?

To support your claim for the tax credit, you must provide several documents, including:

  1. A modeled array output report using the PV Watts Solar System Performance Calculator.
  2. A solar site shading analysis conducted using a recognized assessment tool.
  3. A signed installation contract and a receipt or paid invoice detailing the purchase amount.

Failure to provide this documentation may result in the disallowance of your credit.

Can I claim other tax benefits for the same system?

You may use the Louisiana solar energy tax credit in addition to any federal credits you qualify for. However, you cannot claim any other state tax benefits for the property for which you are claiming the Louisiana credit. It’s crucial to understand the limitations to avoid any potential issues with your tax filings.

What if I received the credit through a partnership or trust?

If you received the solar energy tax credit through a partnership, trust, or small business corporation, you must retain copies of the Schedule K-1 or other supporting documents that show your share of the distributed credit. This documentation is essential for accurately reporting your tax credit on your individual tax return.

How do I submit the Louisiana R 1086 form?

The completed Louisiana R 1086 form, along with all required worksheets and supporting documentation, should be submitted with your Louisiana income tax return. Ensure that you keep copies of everything for your records. Filing accurately and on time is crucial to securing your tax credit.

Common mistakes

  1. Incorrect Personal Information: Many individuals fail to accurately fill in their name, Social Security number, or the Louisiana Revenue Account number. This can lead to significant delays in processing your claim.

  2. Omitting Spousal Information: If filing jointly, neglecting to include your spouse’s name and Social Security number is a common oversight. This information is crucial for joint returns.

  3. Missing Worksheets: Each solar energy system requires a separate worksheet. Some people mistakenly attach only one worksheet for multiple systems, which can result in disqualification of credits.

  4. Inadequate Documentation: Failing to provide all necessary supporting documents, such as installation contracts or receipts, can lead to the rejection of your credit claim. Ensure all required paperwork is attached.

  5. Ignoring Eligibility Criteria: Many applicants overlook the specific eligibility requirements for the solar energy credit. Not understanding these can lead to claiming credits that are not applicable.

  6. Incorrect Calculation of Credit: Miscalculating the total available credit or the eligible costs associated with the solar system is a frequent mistake. Double-check your math to avoid errors.

  7. Failure to Sign: Lastly, some individuals forget to sign the form or have their spouse sign if filing jointly. A missing signature can halt the entire process.

Documents used along the form

The Louisiana R 1086 form is essential for individuals and businesses claiming the solar energy income tax credit. However, several other documents often accompany this form to ensure that the credit is properly claimed and validated. Below are four key documents that play a vital role in this process.

  • Worksheet for Solar Energy Systems: This document helps taxpayers calculate the total credit available for each solar energy system installed. It includes details on costs associated with the equipment, installation, and any applicable taxes, guiding users through the necessary calculations to determine their eligible credit.
  • Supplemental Information Sheet: This sheet provides additional required information about the solar energy system. It includes specifications of the installed components, such as make and model, and necessitates supporting documents like installation contracts and performance reports, which are crucial for establishing eligibility for the tax credit.
  • Residential Property Owner Declaration: This declaration must be signed by the property owner where the solar system is installed. It confirms the owner’s understanding of the terms of the tax credit and their right to consult a tax professional, ensuring that they are aware of what costs can and cannot be included in the credit calculation.
  • Sworn Statements by Licensed Dealer and Installer: This document includes sworn statements from both the dealer who leased the system and the installer. It certifies that the installation meets all legal requirements and that the system is eligible for the claimed credit, adding an extra layer of verification to the claim process.

In summary, while the Louisiana R 1086 form is central to claiming the solar energy income tax credit, these accompanying documents provide necessary details and assurances that help streamline the process and validate claims. Understanding each of these forms is crucial for anyone looking to benefit from this tax incentive.

Similar forms

The Louisiana R 1086 form is similar to the IRS Form 5695, which is used to claim residential energy credits. Both forms allow taxpayers to receive credits for the installation of renewable energy systems. They require detailed information about the system installed, including costs and specifications. However, while Form 5695 is federal and applicable nationwide, the R 1086 is specific to Louisiana and includes state-specific regulations and eligibility criteria.

Another comparable document is the California Solar Initiative (CSI) application. Like the R 1086, the CSI application is designed to provide financial incentives for solar energy system installations. Both documents require information about the system's specifications and costs. However, the CSI program focuses on rebates rather than tax credits, creating a different financial structure for the incentive provided.

The New York State Solar Incentive Program application also shares similarities with the R 1086. Both forms aim to promote solar energy adoption by offering financial benefits to residents and businesses. They both require documentation of system costs and installation details. However, New York's program may offer a tiered incentive structure based on system size, while Louisiana's R 1086 has a fixed percentage credit.

The Massachusetts Solar Renewable Energy Certificate (SREC) application is another document that parallels the R 1086. Both forms are aimed at encouraging solar energy usage through financial incentives. The R 1086 provides a tax credit, while the SREC program allows solar system owners to sell renewable energy certificates for additional income. Each document requires verification of system installation and performance.

In addition, the Florida Solar Energy System Incentives application aligns with the R 1086 in its goal of promoting solar energy. Both forms require detailed information about the solar system and its costs. While the R 1086 provides a tax credit, Florida’s program offers upfront rebates based on system performance and capacity, creating a different incentive mechanism.

The Texas Solar Tax Credit application also shares common ground with the R 1086. Both documents allow taxpayers to claim credits for solar energy systems installed at their properties. They require similar documentation regarding system specifications and costs. However, Texas has a cap on the total amount of credits available, which may not be present in the Louisiana program.

The Illinois Solar Renewable Energy Credit application is yet another document akin to the R 1086. Both applications aim to incentivize solar energy adoption through financial credits. The R 1086 provides a state tax credit, while Illinois offers a market-based incentive structure for renewable energy credits. Each form necessitates detailed information about the solar system and its installation.

Lastly, the New Jersey Solar Incentive Program application is comparable to the R 1086 in its objectives. Both documents are designed to encourage solar energy installations by providing financial incentives. They require extensive documentation about the solar system and its costs. However, New Jersey's program is known for its robust incentive structure that includes both upfront rebates and ongoing credits, differing from the fixed percentage offered in Louisiana.

Dos and Don'ts

When filling out the Louisiana R 1086 form, it is important to be thorough and accurate. Below is a list of things to do and avoid to ensure your application is processed smoothly.

  • Do: Complete the worksheet for each solar energy system before filling out the form.
  • Do: Include the total available credit from all worksheets.
  • Do: Ensure that all names and addresses are printed clearly and correctly.
  • Do: Attach copies of any required documents, such as the installation contract and receipts.
  • Do: Sign and date the form where indicated, including the spouse's signature if filing jointly.
  • Don't: Leave any sections of the form blank; every field must be filled out.
  • Don't: Forget to check the eligibility of your solar system components for the tax credit.
  • Don't: Use any state tax benefits for property for which the credit is claimed.
  • Don't: Submit the form without reviewing it for accuracy and completeness.
  • Don't: Ignore the deadlines for filing; ensure that you submit your form on time.

Misconceptions

  • Misconception 1: The Louisiana R 1086 form can only be used by homeowners.
  • This form is not exclusive to individual homeowners. Both individuals and businesses can utilize the R 1086 form to claim the solar energy income tax credit. This flexibility allows various entities, including partnerships and corporations, to benefit from the incentives provided for solar energy installations.

  • Misconception 2: The tax credit is only applicable for systems purchased outright.
  • Many believe that the tax credit is only available for systems purchased directly. However, the credit can also be claimed for leased systems. In such cases, the credit can be claimed by the third-party owner through a lease agreement, making solar energy more accessible for those who may not wish to purchase a system outright.

  • Misconception 3: Any solar energy system qualifies for the tax credit.
  • Not all solar energy systems are eligible for the credit. The system must meet specific requirements, including compliance with the "Buy American" provisions of federal law. Additionally, the system must be installed in a qualifying residential property, and only one credit is permitted per residence.

  • Misconception 4: The credit amount is fixed and does not depend on installation costs.
  • Some individuals assume that the tax credit amount is a flat rate. In reality, the credit is calculated based on the eligible costs associated with the solar energy system. For systems installed in 2017, the credit equals 38% of the first $20,000 of eligible costs, which can vary significantly based on the specific expenses incurred during installation.

Key takeaways

  • The Louisiana R 1086 form is essential for claiming the solar energy income tax credit for the tax year 2017. Both individuals and businesses can utilize this form.

  • Complete the worksheet provided on page 2 for each solar energy system. This ensures accurate calculations of the total available credit.

  • It is crucial to gather and retain all necessary documentation, such as the Schedule K-1 if the credit is received through a partnership or trust.

  • The tax credit is set at 38% of the first $20,000 of eligible costs for leased systems, with specific limits on the cost basis.

  • Only one tax credit is allowed per residence, even if multiple systems are installed. This rule applies to both purchased and leased systems.

  • All components purchased after July 1, 2013, must comply with the "Buy American" requirements established by federal law.

  • Failure to provide required supplemental information, such as installation contracts and performance reports, may lead to disallowance of the credit.