| 1 | 1 | | 81R1532 JE-D |
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| 2 | 2 | | By: Rodriguez H.B. No. 237 |
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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 a deduction under the franchise tax for certain |
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| 8 | 8 | | renewable energy devices. |
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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 C, Chapter 171, Tax Code, is amended |
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| 11 | 11 | | by adding Section 171.1075 to read as follows: |
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| 12 | 12 | | Sec. 171.1075. DEDUCTION OF COST OF CERTAIN RENEWABLE |
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| 13 | 13 | | ENERGY DEVICES FROM MARGIN APPORTIONED TO THIS STATE. (a) In this |
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| 14 | 14 | | section: |
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| 15 | 15 | | (1) "Renewable energy device" means a device that |
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| 16 | 16 | | exclusively uses one or more renewable energy technologies to |
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| 17 | 17 | | generate electricity. The term does not include a solar energy |
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| 18 | 18 | | device as that term is defined by Section 171.107(a). |
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| 19 | 19 | | (2) "Renewable energy technology" has the meaning |
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| 20 | 20 | | assigned by Section 39.904(d), Utilities Code. |
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| 21 | 21 | | (3) "Retail customer" has the meaning assigned by |
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| 22 | 22 | | Section 31.002, Utilities Code. |
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| 23 | 23 | | (b) A taxable entity that is a retail customer may deduct |
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| 24 | 24 | | from the taxable entity's apportioned margin 10 percent of the |
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| 25 | 25 | | amortized cost of a renewable energy device if: |
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| 26 | 26 | | (1) the device is acquired by the taxable entity for |
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| 27 | 27 | | heating and cooling or for the production of power for the taxable |
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| 28 | 28 | | entity; |
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| 29 | 29 | | (2) the device is used in this state by the taxable |
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| 30 | 30 | | entity; and |
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| 31 | 31 | | (3) the cost of the device is amortized in accordance |
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| 32 | 32 | | with Subsection (c). |
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| 33 | 33 | | (c) The amortization of the cost of a renewable energy |
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| 34 | 34 | | device must: |
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| 35 | 35 | | (1) be for a period of at least 60 months; |
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| 36 | 36 | | (2) provide for equal monthly amounts or conform to |
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| 37 | 37 | | federal depreciation schedules; |
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| 38 | 38 | | (3) begin on the month in which the device is placed in |
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| 39 | 39 | | service in this state; and |
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| 40 | 40 | | (4) cover only a period in which the device is in use |
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| 41 | 41 | | in this state. |
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| 42 | 42 | | (d) A taxable entity that makes a deduction under this |
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| 43 | 43 | | section shall file with the comptroller an amortization schedule |
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| 44 | 44 | | showing the period in which a deduction is to be made. On the |
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| 45 | 45 | | request of the comptroller, the taxable entity shall file with the |
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| 46 | 46 | | comptroller proof of the cost of the renewable energy device or |
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| 47 | 47 | | proof of the device's operation in this state. |
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| 48 | 48 | | SECTION 2. This Act applies only to a report originally due |
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| 49 | 49 | | on or after January 1, 2010. |
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| 50 | 50 | | SECTION 3. This Act takes effect January 1, 2010. |
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