Incentives
First-time homebuyer tax credit
In 2008, Congress enacted the first-time homebuyer tax credit. Unlike other credits, this one had to be repaid, making it unattractive to many taxpayers. The new law removes the repayment requirement for homes purchased by first-time buyers between January 1, 2009 and December 1, 2009. The enhanced credit equals 10 percent of the purchase price of a home up to $8,000 ($4,000 for married individuals filing separately). There are income limitations, which preclude higher-income individuals and couples from taking advantage of the credit.
More information: $8000 First-Time Home Buyer Tax Credit – Explained
Energy Incentives
The new law enhances several energy tax incentives that reward taxpayers for installing energy-efficient property and alternative sources of energy in their homes. Among the types of energy-efficient property that may qualify for a tax break are certain heat pumps, furnaces, windows and doors. There’s also a tax break for purchasers of plug-in electric vehicles.
Louisiana Incentives
Property Tax Incentives for Renewable Energy
In Louisiana, any solar energy system attached to an owner-occupied residence or pool is considered personal property and therefore except from ad valorem taxation. The value of the solar system will not be included in the property assessment.
Tax Credit for Solar and Wind Energy Systems
Louisiana provides a tax credit for the purchase and installation of solar and wind energy systems. The credit may be applied to solar-electric systems (PV systems) and solar thermal systems, when the energy is used for space heating, space cooling and water heating. The amount of the credit is equal to 50% of the first $25,000 of the cost of the system, not to exceed $12,500 per installed system.
More information: Louisiana Solar Tax Credit
Home Energy Rebate Option (HERO)
This program is offered by the Louisiana Department of Natural Resources for residents to receive cash rebates for energy efficient improvements to existing homes.
Tax Incentive – Frequently Asked Questions
Am I eligible?
If you have not owned a home in the past three years, you probably qualify. (You are still considered first-time homebuyers and may qualify for the incentive even if you owned a home more than three years ago.)
Am I entitled to the full $8,000 home-buying incentive?
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. The credit is based on 10% of the purchase price of the home up to the maximum of $8,000.
How does the home-buying incentive work?
It is a direct tax credit that reduces the amount of taxes you owe. It’s different from a tax deduction, which only reduces the amount of your income that is subject to tax.
If your eligible tax credit is more than what you owe in taxes, the balance will be refunded to you. (See an example scenario at FederalHousingTaxCredit.com.)
How long does the program last?
The federal home-buying incentive applies to homes purchased (closed) on or after January 1, 2009, and before December 1, 2009.
The tax credit can be claimed on your 2008 or 2009 tax return.
How can Road Home Builders help?
Road Home Builders builds houses that are very energy efficient and can produce their own power and hot water saving you tens of thousands of dollars in utility costs. There are additional Solar Tax Credits from Louisiana and the Federal Government to pay up to 80% of the cost of installation in addition to the first time homebuyer credit.
For additional details on the federal home-buying incentive, visit FederalHousingTaxCredit.com.
For information on the Louisiana State Solar Tax Credit visit www.revenue.louisiana.gov/forms/lawspolicies/AR_LAC61_I_1907.pdf