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Profitability Points

Welcome to Profitability Points, the blog space of Person Huff CPA group! We’ve decided to take up the challenge of making the boring topics of accounting and small business interesting enough that you read our posts and learn something you can apply in your daily operations. Our goal is to help you make (and keep!) more money by providing timely information about federal and state taxes, managing cash flow and streamlining operations. Learn more about our Five Point Profitability Checkup

Louisiana State Solar Energy Tax Credit Limit Has Been Reached

The amount of claims already submitted for Louisiana’s solar energy system tax credit exceeds the amount of money available to pay claims on purchased systems through the scheduled end of the credit program on December 31, 2017. Consumers purchasing residential solar energy systems from this point forward should not expect to receive tax credits from the state.

Act 131 of the 2015 Regular Session of the Louisiana Legislature placed yearly limits, or “caps,” on the amount of money available to pay claims in the solar tax credit program, which ends on December 31, 2017:

  • Fiscal Year 2015-201: $10,000,000
  • Fiscal Year 2016-2017: $10,000,000
  • Fiscal Year 2017-2018: $5,000,000

As required by state law, the Louisiana Department of Revenue approves these tax credit claims on a first-come, first-served basis, based on the date the tax return is filed. The Department is currently reviewing previously submitted claims and the amount of approved credits and claims under review exceeds the funds available to pay claims on solar energy systems by $14 million.

Taxpayers who do not receive refunds under the 2016 fiscal year cap will be notified in writing if they are eligible for deferred claims under the $10 million cap for fiscal year 2016-2017 or the $5 million cap for the 2017-2018 fiscal year. Any taxpayer who is denied a solar energy system tax credit due to lack of funds will receive a certified letter of denial.

General information on the current status of all capped tax credits is available on the Department of Revenue website: http://revenue.louisiana.gov/LawsAndPolicies/CreditCaps

I Got a Notice From the IRS – What Should I Do?

July 13, 2016

The IRS will send a notice or a letter for any number of reasons. It may be about a specific issue on your federal tax return or account, or may tell you about changes to your account, ask you for more information, or request a payment. Before you proceed, check where the notice came from […]

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Tax “Reduced” Holiday – August 5th and 6th

July 5, 2016

The annual “Tax Free Holiday” is now a “Tax Reduced Holiday” because of changes made during the first Special Session. Regular “Tax Free Weekends” will not return until July 1, 2018. The Louisiana Annual Sales Tax Holiday provides an exemption from state sales tax on the first $2,500 of the purchase price of most individual […]

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Should Louisiana Raise Taxes Again?

June 13, 2016

Two interesting and related articles this morning – the first from The Advocate regarding a poll about raising taxes during the upcoming Special Session: FULL ARTICLE ON BUSINESSREPORT.COM “Roughly seven in 10 Louisianans, or 72%, believe increasing taxes will keep businesses from relocating to The Bayou State, according to the results of a poll of […]

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Person Huff CPA Staff Relaxes After Tax Season!

May 24, 2016

We treated our entire staff to a relaxing fishing trip May 13th to celebrate the end of tax season! Check out the photos!!

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Changes to Louisiana Corporate Franchise Law Tax

May 11, 2016

The changes to the Louisiana corporate franchise tax adopted during the Session appear to be potentially more far reaching than the changes to the state sales and use tax. For tax periods beginning on or after January 1, 2017, Act 12 (signed by the Governor and effective March 10, 2016) expands the Louisiana corporate franchise […]

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Changes to the Solar Credit for Louisiana Taxpayers

May 5, 2016

The Regular Legislative Session made several changes to the solar credit as described in Act 131. Act 131 repealed the eligibility of numerous types of systems, including but not limited to solar thermal systems and solar air conditioning systems, and imposed a requirement that the solar energy system be installed on the homeowner’s primary residence. […]

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Vapor Excise Taxes in Louisiana

April 27, 2016

The sale of vapor products grew by 23 percent in 2014, and some project that vapor products will surpass traditional cigarettes in consumption over the next decade. This leaves policymakers with the challenge of determining exactly how or whether these emerging products should be taxed.In the 2015 legislative session, at least 25 states and the […]

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Changes to Tax Status of Non-Profits

April 20, 2016

A number of changes were made during the Special Session under Act 25 and 26 to the tax status of non-profit organizations in Louisiana. These changes to sales taxes are of particular concern because non-profits must now collect sales tax for items which were previously tax-exempt. Effective April 1, 2016, various events sponsored by domestic […]

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