Texas House Bill HB1902

Texas 2009 - 81st Regular

Caption

Relating to exemptions from the sales tax for certain energy-efficient products.

Impact

If enacted, HB1902 would significantly affect the sales tax regime applicable to specific categories of energy-efficient products. This includes items like air conditioners, clothes washers, dehumidifiers, and certain lighting types, which would be exempt from sales tax if they meet specified price thresholds. The aim is to provide financial incentives for consumers to invest in energy-efficient technologies, aligning with broader environmental goals and the state's interest in reducing overall energy consumption and greenhouse gas emissions.

Summary

House Bill 1902 proposes amendments to the Texas Tax Code, specifically targeting exemptions from sales tax for a range of energy-efficient products. The bill aims to encourage the adoption of environmentally friendly technologies among consumers by reducing their financial burden when purchasing energy-efficient appliances and devices. By designating certain products as eligible for sales tax exemptions, the bill seeks to promote a shift towards more sustainable consumption patterns.

Contention

While the bill has the potential to positively influence consumer behavior and energy conservation, there may be points of contention regarding its implementation and overall fiscal impact. Critics might raise concerns over the loss of sales tax revenue for the state and local governments, questioning whether the financial benefits of increased sales in energy-efficient products would outweigh this loss. Additionally, the efficacy of relying on tax exemptions as a tool for environmental policy could be critically examined, especially regarding who ultimately benefits from these incentives.