| 1 | 1 | | 81R7484 CBH-D |
|---|
| 2 | 2 | | By: Truitt H.B. No. 1140 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to a franchise tax credit for the purchase and |
|---|
| 8 | 8 | | installation of solar energy devices connected to an electric |
|---|
| 9 | 9 | | transmission or distribution system. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
|---|
| 12 | 12 | | Subchapter X to read as follows: |
|---|
| 13 | 13 | | SUBCHAPTER X. TAX CREDIT FOR PURCHASE AND INSTALLATION OF SOLAR |
|---|
| 14 | 14 | | ENERGY DEVICES CONNECTED TO AN ELECTRIC TRANSMISSION OR |
|---|
| 15 | 15 | | DISTRIBUTION SYSTEM |
|---|
| 16 | 16 | | Sec. 171.961. DEFINITIONS. In this subchapter: |
|---|
| 17 | 17 | | (1) "Electric cooperative" has the meaning assigned by |
|---|
| 18 | 18 | | Section 11.003, Utilities Code. |
|---|
| 19 | 19 | | (2) "Electric utility" has the meaning assigned by |
|---|
| 20 | 20 | | Section 31.002, Utilities Code. |
|---|
| 21 | 21 | | (3) "Municipally owned utility" has the meaning |
|---|
| 22 | 22 | | assigned by Section 11.003, Utilities Code. |
|---|
| 23 | 23 | | (4) "Retail customer" has the meaning assigned by |
|---|
| 24 | 24 | | Section 31.002, Utilities Code. |
|---|
| 25 | 25 | | (5) "Retail electric provider" has the meaning |
|---|
| 26 | 26 | | assigned by Section 31.002, Utilities Code. |
|---|
| 27 | 27 | | (6) "Solar energy device" has the meaning assigned by |
|---|
| 28 | 28 | | Section 171.107. |
|---|
| 29 | 29 | | Sec. 171.962. ENTITLEMENT TO CREDIT. A taxable entity is |
|---|
| 30 | 30 | | entitled to a credit in the amount and under the conditions and |
|---|
| 31 | 31 | | limitations provided by this subchapter against the tax imposed |
|---|
| 32 | 32 | | under this chapter. |
|---|
| 33 | 33 | | Sec. 171.963. QUALIFICATION. A taxable entity that is a |
|---|
| 34 | 34 | | retail customer qualifies for a credit under this subchapter if the |
|---|
| 35 | 35 | | taxable entity: |
|---|
| 36 | 36 | | (1) acquires a solar energy device for the production |
|---|
| 37 | 37 | | of power; |
|---|
| 38 | 38 | | (2) installs the device in this state on the taxable |
|---|
| 39 | 39 | | entity's side of the meter; and |
|---|
| 40 | 40 | | (3) connects the device to an electric transmission or |
|---|
| 41 | 41 | | distribution system and sells the surplus electricity produced by |
|---|
| 42 | 42 | | the device to a retail electric provider or the electric utility, |
|---|
| 43 | 43 | | electric cooperative, or municipally owned utility that owns that |
|---|
| 44 | 44 | | system. |
|---|
| 45 | 45 | | Sec. 171.964. AMOUNT; LIMITATIONS. (a) The amount of the |
|---|
| 46 | 46 | | credit under this subchapter is equal to 50 percent of the cost to |
|---|
| 47 | 47 | | the taxable entity of acquiring and installing the solar energy |
|---|
| 48 | 48 | | device. |
|---|
| 49 | 49 | | (b) The total credit claimed for a report may not exceed the |
|---|
| 50 | 50 | | amount of franchise tax due for the report before any other |
|---|
| 51 | 51 | | applicable tax credits. |
|---|
| 52 | 52 | | (c) A taxable entity may not convey, assign, or transfer a |
|---|
| 53 | 53 | | credit under this subchapter to another entity unless all of the |
|---|
| 54 | 54 | | assets of the taxable entity are conveyed, assigned, or transferred |
|---|
| 55 | 55 | | in the same transaction. |
|---|
| 56 | 56 | | Sec. 171.965. LENGTH OF CREDIT. A taxable entity must claim |
|---|
| 57 | 57 | | the credit under this subchapter in three installments that are as |
|---|
| 58 | 58 | | equal as possible over three consecutive reports beginning with the |
|---|
| 59 | 59 | | report based on the period during which the taxable entity incurred |
|---|
| 60 | 60 | | the cost of acquiring and installing the solar energy device. |
|---|
| 61 | 61 | | Sec. 171.966. APPLICATION FOR CREDIT. A taxable entity |
|---|
| 62 | 62 | | must apply for a credit under this subchapter on or with the report |
|---|
| 63 | 63 | | for the period for which the credit is claimed. |
|---|
| 64 | 64 | | Sec. 171.967. RULES. The comptroller shall adopt rules |
|---|
| 65 | 65 | | necessary to implement this subchapter. |
|---|
| 66 | 66 | | Sec. 171.968. EXPIRATION. (a) This subchapter expires |
|---|
| 67 | 67 | | December 31, 2015. |
|---|
| 68 | 68 | | (b) The expiration of this subchapter does not affect a |
|---|
| 69 | 69 | | credit that was established under this subchapter before the date |
|---|
| 70 | 70 | | this subchapter expires. A taxable entity that has any unused |
|---|
| 71 | 71 | | credits established under this subchapter may continue to apply |
|---|
| 72 | 72 | | those credits on or with each consecutive report until the date the |
|---|
| 73 | 73 | | credit would have expired under this subchapter had this subchapter |
|---|
| 74 | 74 | | not expired, and this subchapter is continued in effect for the |
|---|
| 75 | 75 | | purposes of determining the amount of the credit the taxable entity |
|---|
| 76 | 76 | | may claim and the manner in which the taxable entity may claim the |
|---|
| 77 | 77 | | credit. |
|---|
| 78 | 78 | | SECTION 2. This Act applies only to a report originally due |
|---|
| 79 | 79 | | on or after the effective date of this Act. |
|---|
| 80 | 80 | | SECTION 3. This Act takes effect January 1, 2010. |
|---|