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