81R1532 JE-D
By: Rodriguez H.B. No. 237
A BILL TO BE ENTITLED
AN ACT
relating to a deduction under the franchise tax for certain
renewable energy devices.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended
by adding Section 171.1075 to read as follows:
Sec. 171.1075. DEDUCTION OF COST OF CERTAIN RENEWABLE
ENERGY DEVICES FROM MARGIN APPORTIONED TO THIS STATE. (a) In this
section:
(1) "Renewable energy device" means a device that
exclusively uses one or more renewable energy technologies to
generate electricity. The term does not include a solar energy
device as that term is defined by Section 171.107(a).
(2) "Renewable energy technology" has the meaning
assigned by Section 39.904(d), Utilities Code.
(3) "Retail customer" has the meaning assigned by
Section 31.002, Utilities Code.
(b) A taxable entity that is a retail customer may deduct
from the taxable entity's apportioned margin 10 percent of the
amortized cost of a renewable energy device if:
(1) the device is acquired by the taxable entity for
heating and cooling or for the production of power for the taxable
entity;
(2) the device is used in this state by the taxable
entity; and
(3) the cost of the device is amortized in accordance
with Subsection (c).
(c) The amortization of the cost of a renewable energy
device must:
(1) be for a period of at least 60 months;
(2) provide for equal monthly amounts or conform to
federal depreciation schedules;
(3) begin on the month in which the device is placed in
service in this state; and
(4) cover only a period in which the device is in use
in this state.
(d) A taxable entity that makes a deduction under this
section shall file with the comptroller an amortization schedule
showing the period in which a deduction is to be made. On the
request of the comptroller, the taxable entity shall file with the
comptroller proof of the cost of the renewable energy device or
proof of the device's operation in this state.
SECTION 2. This Act applies only to a report originally due
on or after January 1, 2010.
SECTION 3. This Act takes effect January 1, 2010.