81R7484 CBH-D
By: Truitt H.B. No. 1140
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for the purchase and
installation of solar energy devices connected to an electric
transmission or distribution system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter X to read as follows:
SUBCHAPTER X. TAX CREDIT FOR PURCHASE AND INSTALLATION OF SOLAR
ENERGY DEVICES CONNECTED TO AN ELECTRIC TRANSMISSION OR
DISTRIBUTION SYSTEM
Sec. 171.961. DEFINITIONS. In this subchapter:
(1) "Electric cooperative" has the meaning assigned by
Section 11.003, Utilities Code.
(2) "Electric utility" has the meaning assigned by
Section 31.002, Utilities Code.
(3) "Municipally owned utility" has the meaning
assigned by Section 11.003, Utilities Code.
(4) "Retail customer" has the meaning assigned by
Section 31.002, Utilities Code.
(5) "Retail electric provider" has the meaning
assigned by Section 31.002, Utilities Code.
(6) "Solar energy device" has the meaning assigned by
Section 171.107.
Sec. 171.962. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions and
limitations provided by this subchapter against the tax imposed
under this chapter.
Sec. 171.963. QUALIFICATION. A taxable entity that is a
retail customer qualifies for a credit under this subchapter if the
taxable entity:
(1) acquires a solar energy device for the production
of power;
(2) installs the device in this state on the taxable
entity's side of the meter; and
(3) connects the device to an electric transmission or
distribution system and sells the surplus electricity produced by
the device to a retail electric provider or the electric utility,
electric cooperative, or municipally owned utility that owns that
system.
Sec. 171.964. AMOUNT; LIMITATIONS. (a) The amount of the
credit under this subchapter is equal to 50 percent of the cost to
the taxable entity of acquiring and installing the solar energy
device.
(b) The total credit claimed for a report may not exceed the
amount of franchise tax due for the report before any other
applicable tax credits.
(c) A taxable entity may not convey, assign, or transfer a
credit under this subchapter to another entity unless all of the
assets of the taxable entity are conveyed, assigned, or transferred
in the same transaction.
Sec. 171.965. LENGTH OF CREDIT. A taxable entity must claim
the credit under this subchapter in three installments that are as
equal as possible over three consecutive reports beginning with the
report based on the period during which the taxable entity incurred
the cost of acquiring and installing the solar energy device.
Sec. 171.966. APPLICATION FOR CREDIT. A taxable entity
must apply for a credit under this subchapter on or with the report
for the period for which the credit is claimed.
Sec. 171.967. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
Sec. 171.968. EXPIRATION. (a) This subchapter expires
December 31, 2015.
(b) The expiration of this subchapter does not affect a
credit that was established under this subchapter before the date
this subchapter expires. A taxable entity that has any unused
credits established under this subchapter may continue to apply
those credits on or with each consecutive report until the date the
credit would have expired under this subchapter had this subchapter
not expired, and this subchapter is continued in effect for the
purposes of determining the amount of the credit the taxable entity
may claim and the manner in which the taxable entity may claim the
credit.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.