January 22, 2020

by William H. Bell, Senior Associate

I. Introduction

In 2007, the Louisiana Legislature, in an effort to increase the amount of solar energy produced within the state, implemented a tax credit for taxpayers who purchased residential solar panels.[1] Beginning in 2008, the solar tax credit gave Louisiana residents a tax credit of 50% of the purchase price on the purchase of residential solar panels, up to $25,000.[2] For example, if a Louisiana resident purchased a $20,000 solar panel system, the taxpayer would receive a $10,000 tax credit. In 2015, Louisiana Legislative Act 131 implemented a $10,000,000 cap on the amount of tax credits the state would issue for the 2015 and 2016 fiscal years, with an effective date of June 19, 2015.[3] Just days before the tax credit cap became effective, Justin and Gwen Ulrich and Raymond and Pam Alleman (collectively “the Taxpayers”) purchased and installed tax credit eligible solar electric systems with the expectation of receiving the tax credits.[4] In 2016, the Taxpayers filed their 2015 income tax returns seeking the tax credits.[5] Act 131’s cap for the 2015 fiscal year had already been met by the time the Taxpayers filed their 2015 tax returns, so the Louisiana Department of Revenue denied the Taxpayers’ tax credits.[6] The Taxpayers then sued the Louisiana Department of Revenue, claiming that Act 131 was unconstitutional because they had been deprived of vested property rights in the tax credits.[7] The Taxpayers litigated their lawsuit for nearly four years.[8] During that period, in 2017, the Louisiana Legislature enacted Act 413, giving the solar tax credit to any taxpayer who purchased solar panels between July 1, 2015, and January 1, 2016, in reliance on the tax credit but did not receive the tax credit because of the $10,000,000 cap.[9] Consequently, the Louisiana Supreme Court declared the Taxpayers’ cause of action moot.[10] Although the Louisiana Legislature remedied the Taxpayers’ harm before a final ruling on the Taxpayers’ lawsuit, the Louisiana Department of Revenue and the Louisiana Legislature should implement reasonable measures that will prevent similar lawsuits from arising, thereby reducing the state’s litigation costs.

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by Michael Schimpf, Senior Associate

November 19, 2019

I. Introduction

Acquisitive prescription is Louisiana’s method of acquiring ownership whereby a possessor attains ownership by possessing a thing for a certain period of time.[1] Acquisitive prescription allows a trespasser, whether in good faith or bad faith,[2] to take ownership over another’s property. Commentators have jokingly labeled acquisitive prescription as a form of “legalized stealing.”[3] Acquisitive prescription, however, has benefits. First, it solves complex title disputes without forcing courts to trace murky titles for generations because it cures any title defects and creates a new title.[4] Second, because the true owner of the property has neglected the thing by allowing the acquisitive prescriber to possess it for an extended time, acquisitive prescription transfers title to the prescriber who values the thing more and has put it to productive use.[5]

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by Sophie DiLoreto, Senior Associate

November 4, 2019

“In God We Trust.” These four words have appeared on all U.S. coins since 1938 and on all U.S. paper currency since 1957.[1] Additionally, as of the 2019–2020 academic year, Louisiana law mandates that these words appear in every public school in the state.[2]

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