Texas 2009 - 81st Regular

Texas House Bill HB1992 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R10505 CBH-D
2	2	By: Rodriguez H.B. No. 1992
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a franchise tax credit for certain investments made in
8	8	relation to certain renewable energy generation projects.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 171, Tax Code, is amended by adding
11	11	Subchapter V to read as follows:
12	12	SUBCHAPTER V. TAX CREDIT FOR INVESTMENTS IN CERTAIN RENEWABLE
13	13	ENERGY GENERATION PROJECTS
14	14	Sec. 171.901. DEFINITIONS. In this subchapter:
15	15	(1) "Renewable energy generation project" means the
16	16	construction of a facility or the purchase and installation of
17	17	equipment in this state that will use a renewable energy technology
18	18	to generate electricity to:
19	19	(A) replace a substantial part of an existing use
20	20	of petroleum or natural gas, or electricity generated by a
21	21	nonrenewable energy technology;
22	22	(B) provide the initial use of energy in a
23	23	situation in which petroleum or natural gas, or electricity
24	24	generated by a nonrenewable energy technology, would otherwise have
25	25	been used; or
26	26	(C) generate electricity to replace an existing
27	27	source of electricity generated by a nonrenewable energy
28	28	technology or to provide a new source of electricity for sale by or
29	29	for use in a trade or business.
30	30	(2) "Renewable energy technology" has the meaning
31	31	assigned by Section 39.904(d), Utilities Code.
32	32	Sec. 171.902. ENTITLEMENT TO CREDIT. A taxable entity is
33	33	entitled to a credit in the amount and under the conditions and
34	34	limitations provided by this subchapter against the tax imposed
35	35	under this chapter.
36	36	Sec. 171.903. QUALIFICATION. (a) Except as provided by
37	37	Section 171.906, a taxable entity qualifies for a credit under this
38	38	subchapter only if the taxable entity:
39	39	(1) submits to the comptroller an application for
40	40	preliminary certification of a renewable energy generation project
41	41	in this state that the taxable entity owns or has contracted to
42	42	purchase before the taxable entity financially commits to start the
43	43	project;
44	44	(2) receives a preliminary certification from the
45	45	comptroller that the taxable entity appears to be eligible for the
46	46	credit;
47	47	(3) begins work on the project not later than the third
48	48	anniversary of the date the taxable entity receives the preliminary
49	49	certification; and
50	50	(4) receives a final certification from the
51	51	comptroller after the project is completed that the taxable entity
52	52	is eligible for the credit.
53	53	(b) Notwithstanding Subsection (a), a taxable entity that
54	54	financially commits to start a renewable energy generation project
55	55	may submit to the comptroller a request for a waiver from the
56	56	requirement that the application for preliminary certification be
57	57	submitted before the taxable entity financially commits to the
58	58	project. The request must state the reasons why the taxable entity
59	59	did not submit the application before financially committing to the
60	60	project. The taxable entity must submit the request and an
61	61	application for preliminary certification of the project to the
62	62	comptroller not later than the 90th day after the project's start
63	63	date. The comptroller may approve a waiver request only on good
64	64	cause shown.
65	65	Sec. 171.904. AMOUNT; LIMITATIONS. (a) The amount of a
66	66	credit under this subchapter is equal to 50 percent of the cost of
67	67	the renewable energy project after deducting any federal or state
68	68	grant or other state or federal tax credit relating to the project.
69	69	(b) Except as provided by Subsection (c), a taxable entity
70	70	must claim a credit under this subchapter in five installments that
71	71	are as equal as possible over five consecutive reports beginning
72	72	with the report based on the period during which the taxable entity
73	73	receives final certification for the renewable energy generation
74	74	project to which the credit relates.
75	75	(c) A taxable entity may claim the entire amount of the
76	76	credit on the report based on the period during which the taxable
77	77	entity receives final certification for the renewable energy
78	78	generation project to which the credit relates if the amount of the
79	79	cost determined under Subsection (a) does not exceed $20,000.
80	80	(d) The total credit claimed under this subchapter for a
81	81	report may not exceed the amount of franchise tax due after any
82	82	other applicable credits.
83	83	Sec. 171.905. CARRYFORWARD. (a) If a taxable entity is
84	84	eligible for a credit that exceeds the limitation under Section
85	85	171.904(d), the taxable entity may carry the unused credit forward
86	86	for not more than eight consecutive reports.
87	87	(b) A carryforward is considered the remaining portion of a
88	88	credit that cannot be claimed in the current year because of the
89	89	limitation under Section 171.904(d). A carryforward is added to
90	90	the next year's credit in determining whether the limitation is met
91	91	for that year. A credit carryforward from a previous report is
92	92	considered to be used before the current year credit.
93	93	Sec. 171.906. SALE OF TAX CREDIT. (a) An entity that is not
94	94	a taxable entity accrues a credit under this subchapter if the
95	95	entity complies with the requirements of Section 171.903.
96	96	(b) An entity that accrues a credit under this section may
97	97	sell the rights to the credit to one or more taxable entities. The
98	98	entity and the taxable entity must submit a joint application to the
99	99	comptroller for approval of the sale.
100	100	(c) A taxable entity must purchase the rights to the credit
101	101	with a lump-sum cash payment that is at least equal to the credit's
102	102	net present value at the time the comptroller received the joint
103	103	application for approval of the sale. Not later than January 1 each
104	104	year, the comptroller shall prescribe the net present value of
105	105	credits for that taxable year and shall publish that value in the
106	106	Texas Register.
107	107	(d) An entity that sells the rights to an accrued credit to
108	108	more than one taxable entity may divide those rights in any manner
109	109	the entity believes is appropriate provided that:
110	110	(1) the entity sells the rights to the entire credit;
111	111	and
112	112	(2) the entity receives total compensation for that
113	113	credit that is at least equal to the appropriate amount required by
114	114	Subsection (c).
115	115	Sec. 171.907. CERTIFICATION OF ELIGIBILITY. (a) For the
116	116	initial and each succeeding report on which a credit is claimed
117	117	under this subchapter, the taxable entity must file with its
118	118	report, on a form prescribed by the comptroller, information that
119	119	sufficiently demonstrates that the taxable entity is eligible for
120	120	the credit. If the taxable entity purchases the rights to a credit
121	121	under Section 171.906, the taxable entity must also file
122	122	information that sufficiently demonstrates that the entity that
123	123	sold the credit was eligible to accrue the credit.
124	124	(b) The burden of establishing eligibility for, entitlement
125	125	to, and the value of the credit is on the taxable entity.
126	126	Sec. 171.908. ASSIGNMENT PROHIBITED. A taxable entity may
127	127	not convey, assign, or transfer the credit allowed under this
128	128	subchapter to another entity unless all of the assets of the taxable
129	129	entity are conveyed, assigned, or transferred.
130	130	Sec. 171.909. RULES. The comptroller shall adopt rules
131	131	necessary to implement this subchapter.
132	132	SECTION 2. This Act applies only to a report originally due
133	133	on or after the effective date of this Act.
134	134	SECTION 3. This Act takes effect January 1, 2010.