TAX/TAXATION: Establishes an income tax credit for taxpayers who pay to have a fortified roof installed on their property. (gov sig) (EN DECREASE GF RV See Note)

Louisiana homeowners get fortified roof tax credit

Louisiana creates an income tax credit for resident homeowners who pay to install a fortified roof. The credit equals qualified purchase and installation costs, up to $10,000 per taxpayer, with one credit per property. The credit is nonrefundable: it reduces state income tax owed but does not pay cash beyond that amount. Unused credit can carry forward for up to three years. The property must be insurable, owned by the taxpayer, and covered by a homestead exemption. New construction homes, condominiums, and mobile homes do not qualify. The roof must meet or exceed the Insurance Institute for Business and Home Safety's fortified roof standard. That institute must certify the roof; permit, inspection, and other certification costs do not qualify. Eligible costs must be paid on or after July 1, 2025. The credit is earned when the roof is certified, and no credits can be earned after December 31, 2031. Homeowners apply to the Louisiana Department of Revenue from January 1 through June 30 of the following calendar year. Applications must include the roof certificate and required documents, and the department checks eligibility. Homeowners claim the credit on their individual income tax return for the year it is earned. The state limits credits to $10 million per fiscal year, awarded first-come, first-served. Requests received on the same business day share remaining credits proportionally if they exceed the available amount. Requests above the annual cap count as applications received on the first day of the next year. Homeowners who received a grant under Louisiana's fortified-home grant program cannot receive this credit. They also cannot claim another state tax benefit for the same expenses. The department can reclaim credits for expenses later found ineligible by increasing the taxpayer's income tax for that period. Collection must begin within three years from December 31 of the year the credit was taken. Interest runs from the original return date at the statutory rate, and other recovery powers remain available. The department must issue rules for eligibility and administration.