2025 Solar Incentives Guide for Jefferson, LA - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Jefferson?

Source: https://www.dsireusa.org/

Solar incentives encourage homeowners to switch to renewable energy by providing financial incentives meant to lower the burden of solar panel installation and use. You may be eligible for different types of incentives, such as cash back, discounts or credit towards your monthly utility bill, depending on your situation. Certain incentives come from your specific utility company, county or municipality, some from the Louisiana government and others from the federal government. Categories of solar incentives include:

• Tax Exemptions: These could come in the form of property tax exemptions, which can let you exclude the value of your solar system when paying taxes on your house. You may also qualify for an exemption on sales tax at the time of purchase.
• Net Metering: Net metering is an incentive you can get once your solar system is up and running. If you have a net metering agreement in place with your Jefferson utility company, the company will subtract the value of the excess energy produced by your solar system from your monthly utility bill. In some places, this is a dollar-for-dollar credit, while in other places you may be refunded a percentage of the value.
• Tax Credits: Tax credits are dollar-for-dollar reductions that lower the amount of income tax you owe the government. (A tax credit is different from a tax deduction.)
• Rebates: A rebate is a partial refund given after you've purchased your solar system. Rebates may be offered by your local utility company, your state or your county. The cash back that you get from the rebates is normally applied before tax credits are calculated.

Federal Solar Incentives

When you hear the term "solar incentives," federal incentives may be the first thing that comes to mind. An incentive that most people are probably familiar with is the Federal Solar Investment Tax Credit (ITC). This is a tax credit for a specified percentage of the cost of your solar system.

The ITC can be applied to solar systems installed after January 1, 2006, and under this program you can deduct from your taxes a percentage of the total cost of solar panels, labor, accessories and equipment. You can claim this credit for solar panels installed on a primary or secondary residence that you own in the United States. The original claim amount was 30% of the total cost, although the amount you can claim may range between 26-30%. There is no maximum amount you can claim.

To more fully understand how the ITC might apply to your situation, reach out to your local Jefferson solar panel installation expert and ask for more information.

The ITC has been renewed and expanded following the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. The Clean Energy Credit is valid until 2035. Solar installation projects started after January 1, 2022, and completed by the end of 2032 may qualify for a 30% tax credit. The amount will decrease slightly on a yearly basis until the current program ends. The expansion also makes it easier to get credit for energy storage systems, beginning in 2023.

More information about the new Inflation Reduction Act can be found here. The easiest way to understand how the new Clean Energy Credit will apply to you is to speak with your local Jefferson solar panel company directly.

State & Local Solar Incentives

Not all solar incentives are federal; tax credits, rebates and more might also be offered at the state and local level. Certain incentives are ongoing, while others might only be available for a limited time. Incentives may be given by the Louisiana government, or by your county or municipality.

Next Steps for Installing Solar in Jefferson

There are a variety of solar incentives: those offered by local utility companies, those provided by the federal government and those provided by the Louisiana government, to name a few. The use of solar energy has grown enormously in the last 15 years, thanks to these incentives. Getting in touch with your local Jefferson solar panel installation company is the right first step towards getting all the incentives you qualify for when you switch to solar energy.