Proposal to Amend Depreciation Schedules for Solar Farms in Louisiana

Joe Molina, Principal 512.960.1081 |

Jesse Noneman, Principal 317.917.3282 |

Andrew Grove, Director 972.934.0022 |

The Louisiana Tax Commission has scheduled the 2023 Rules and Regulations session to hear proposals on amending the current real and personal property tax rules and regulations for September 21, 2022. One of those proposals is the 2022 Tax Year Joint Proposal of Louisiana Assessors’ Association and Advanced Power Alliance for Chapter 25, Table 2503.A (Solar Farm). This amendment, submitted by the Louisiana Assessors’ Association and the Advanced Power Alliance, requests that the Louisiana Tax Commission redefine the categories and depreciable lives associated with solar farms. Based on their research, the recommended useful lives are as follows:

While the proposed depreciation schedule will shorten the useful life for the panels, taxpayers should still test, identify, and quantify for other forms of obsolescence. The experts at Ryan will continue to monitor the progress of this amendment. If you own a solar farm in Louisiana, we encourage you to contact a Ryan expert to determine how you might benefit from the new policy.