| 1 | 1 | | 81R9484 CBH-F |
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| 2 | 2 | | By: Ortiz, Jr. H.B. No. 1823 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an exemption from sales and use taxation of certain |
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| 8 | 8 | | energy conservation-related property. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 11 | 11 | | by adding Section 151.3334 to read as follows: |
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| 12 | 12 | | Sec. 151.3334. RENEWABLE ENERGY DEVICES. (a) In this |
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| 13 | 13 | | section: |
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| 14 | 14 | | (1) "Renewable energy" means an energy source that is |
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| 15 | 15 | | naturally regenerated over a short time scale and derived directly |
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| 16 | 16 | | or indirectly from the sun or from other natural movements and |
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| 17 | 17 | | mechanisms of the environment. The term: |
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| 18 | 18 | | (A) includes energy derived directly from: |
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| 19 | 19 | | (i) the sun, wind, water, waves, or tides; |
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| 20 | 20 | | (ii) geothermal forces; or |
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| 21 | 21 | | (iii) biomass and biomass-derived waste |
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| 22 | 22 | | products, including landfill gas; and |
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| 23 | 23 | | (B) does not include energy derived from: |
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| 24 | 24 | | (i) fossil fuels and waste products from |
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| 25 | 25 | | fossil fuels; or |
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| 26 | 26 | | (ii) waste products from inorganic sources. |
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| 27 | 27 | | (2) "Renewable energy device" means that portion of a |
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| 28 | 28 | | system or series of mechanisms that is designed primarily to |
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| 29 | 29 | | provide heating or cooling, to provide liquid or gaseous fuels, or |
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| 30 | 30 | | to produce electrical or mechanical power by means of collecting, |
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| 31 | 31 | | transferring, or converting renewable energy. The term includes a |
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| 32 | 32 | | mechanical or chemical device that has the capacity for storing |
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| 33 | 33 | | renewable energy for use in heating or cooling, in the production of |
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| 34 | 34 | | power, or as liquid or gaseous fuels. The term does not include |
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| 35 | 35 | | air-source heat pump systems. |
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| 36 | 36 | | (b) The sale or use of a renewable energy device, including |
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| 37 | 37 | | the system's component parts and any repair or replacement parts, |
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| 38 | 38 | | is exempt from the taxes imposed by this chapter. |
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| 39 | 39 | | (c) This section expires September 2, 2017. |
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| 40 | 40 | | SECTION 2. The change in law made by this Act does not |
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| 41 | 41 | | affect tax liability accruing before the effective date of this |
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| 42 | 42 | | Act. That liability continues in effect as if this Act had not been |
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| 43 | 43 | | enacted, and the former law is continued in effect for the |
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| 44 | 44 | | collection of taxes due and for civil and criminal enforcement of |
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| 45 | 45 | | the liability for those taxes. |
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| 46 | 46 | | SECTION 3. This Act takes effect July 1, 2009, if it |
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| 47 | 47 | | receives a vote of two-thirds of all members elected to each house, |
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| 48 | 48 | | as provided by Section 39, Article III, Texas Constitution. If this |
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| 49 | 49 | | Act does not receive the vote necessary for effect on that date, |
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| 50 | 50 | | this Act takes effect September 1, 2009. |
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