Solar Energy Tax Credit Might Cause Budget Shortfall
Yesterday Public Service Commissioner Clyde Holloway, debated the merits of a solar energy tax credit against representatives from the renewable energies industry.
Holloway's argument to the Revenue Study Commission stated that the tax credit could become a state budget buster unless limitations are added. On the opposing side, Tucker Crawford, with the Gulf States Renewable Energy Industries Association, said the credit creates job growth.
The primary issue is that the credit is for expenses tied to the purchase and installation of wind or solar energy systems.The credit applies to 50% of the first $25,000 in expenses.
Officials estimate the credit will reduce state revenues by more than $13 million in the current fiscal year.