Texas House Bill HB2184

Texas 2009 - 81st Regular

Caption

Relating to a franchise tax credit for building new single-family homes or duplexes that exceed certain energy efficiency standards.

Impact

If passed, HB2184 would amend Chapter 171 of the Texas Tax Code by introducing Subchapter V, which specifically focuses on tax credits for energy-efficient homebuilding. This legislative change is expected to foster a shift in the residential construction market towards enhanced energy efficiency while potentially resulting in a reduction in long-term energy costs for homeowners. The implications of this bill could ripple through local economies as builders capitalize on the tax benefits, potentially leading to more jobs and a boost in materials sales.

Summary

House Bill 2184 introduces a franchise tax credit designed to incentivize the construction of new single-family homes and duplexes that exceed specified energy efficiency standards. The bill aims to encourage builders to adopt more sustainable building practices by offering tax credits based on the degree of energy efficiency surpassed. The proposed incentives vary in amount, with credits ranging from $10,000 to $25,000 depending on how much the constructed home exceeds the established state energy code standards.

Contention

While the bill has garnered support from various stakeholders interested in promoting energy efficiency, it may face scrutiny regarding its fiscal implications on state tax revenues. Critics might argue that providing tax credits could lead to a decrease in the state's overall tax income, affecting funding for public services. Additionally, there could be discussions about ensuring that the established energy efficiency standards are sufficiently rigorous, balancing between encouraging innovation in building practices and maintaining quality control in the housing market.