Federal and State legislatures have recently passed acts that enable a taxpayer to receive tax credits for installing particular types of energy efficient property into residences.

More information can be found at www.energystar.gov/taxcredits 

Louisiana Credits

Applies to solar-thermal and solar-electric property and wind energy systems.

• 50% credit on expenditures with maximum credit of $12,500
• Refundable Credit
• May be taken on multiple systems in the same home
• No property tax on solar property
• Possibly will be increased to a maximum of $50,000 credit

Federal Credits

General Credit Information

• Nonrefundable
• Can be taken against AMT

Residential Energy Property Credit
$1500 maximum credit for 2009 and 2010

• Doors, windows, skylights, insulation, metal or asphalt roofs
• Advanced main air circulating fans, central air conditioners
• Water boilers, water furnaces, water heaters ... must use natural gas, propane or oil
• Electric heat pumps and biomass fuel stoves
• Can include expenditures on installation for all property except doors, windows, skylights, insulation, and roofs
• Must be in principal residence of taxpayer

Residential Alternative Energy Credit
30% credit on expenditures including preparation, assembly and installation of property until 2016

Solar water and solar electric property

• At least half of energy used to heat or cool must be solar to qualify
• Excludes Swimming pools and hot tubs
• Can be in any taxpayer residence

Fuel Cell property

• Credit is limited to $500 per half kilowatt of electric capacity
• Must be installed in taxpayer's principal residence

Small Wind Turbine Property

• May not exceed 100 kilowatts
• Can be in any taxpayer residence

Geothermal heat pump

• Must meet "Energy Star" requirements
• Can be in any taxpayer residence