Tax News

CCH (cch.taxgroup.com) reports:

Legislation is enacted that creates a credit for the cost of purchase and installation of a wind energy system or solar energy system that may be applied to any Louisiana corporation franchise, corporation income, or personal income tax liability. The bill also creates a credit against personal income tax for homeowner, condominium owner, and tenant homeowner insurance policies and makes changes to the inheritance tax.
The credit for the energy systems will be equal to 50% of the first $25,000 of the cost of each energy system, including installation costs, that is purchased and installed on or after January 1, 2008. This credit may be used in addition to any federal tax credits earned for the same system.
The legislation also provides that for tax years beginning during 2008 only, there will be an individual income tax credit of 7% of the premium for a homeowners' insurance policy, condominium owners' insurance policy, or a tenant homeowners' insurance policy paid by the individual during the tax year for the primary residence of the individual.
Additionally, S.B. 211 made changes to the inheritance tax. Now, no inheritance tax will be due for deaths after June 30, 2004. Previously, for there to be no tax due a judgment of possession had to be rendered or succession had to be judicially opened no later than the last day of the ninth month following the death of the decedent. Taxpayers who paid the tax due on death occurring after June 30, 2004, will be able to apply for a refund between August 1, 2008, and December 31, 2009.
Act 371 (S.B. 90), Laws 2007, effective July 10, 2007, applicable as noted.