By: Alvarado H.B. No. 3119
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for the acquisition and
installation of certain air quality monitoring devices to evaluate
the emission of air contaminants.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter U to read as follows:
SUBCHAPTER U. TAX CREDIT FOR ACQUISITION AND INSTALLATION OF
CERTAIN AIR QUALITY MONITORING DEVICES TO MONITOR THE EMISSION OF
AIR CONTAMINANTS
Sec. 171.901. DEFINITIONS. In this subchapter:
(1) "Air quality monitoring device" means a device,
including a device that employs infrared technology, installed or
placed on the perimeter or within the boundaries of a facility to
evaluate the emission of air contaminants.
(2) "Commission" means the Texas Commission on
Environmental Quality or its successor.
(3) "Executive director" means the executive director
of the Texas Commission on Environmental Quality.
(4) "Major source" has the meaning assigned by Title V
of the federal Clean Air Act (42 U.S.C. Section 7661 et seq.).
Sec. 171.902. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions and
limitations provided by this subchapter against the tax imposed
under this chapter.
Sec. 171.903. QUALIFICATION. (a) A taxable entity
qualifies for a credit under this subchapter if the taxable entity:
(1) provides for daily monitoring of the emission of
air contaminants from a major source;
(2) makes and maintains records on the measuring and
monitoring of the emissions; and
(3) provides the commission a copy of the records on
the measuring and monitoring of the emissions periodically as
required by the commission.
(b) The taxable entity shall maintain records of air
monitoring data on site for review by the commission, including:
(1) each hazardous air pollutant listed under 42
U.S.C. Section 7412 of the federal Clean Air Act that is applicable
to the major source;
(2) each air contaminant that the owner or operator
has reason to believe may be emitted from the major source; and
(3) any other air contaminant that the executive
director requests that the owner or operator monitor.
Sec. 171.904. AMOUNT; LIMITATIONS. (a) The amount of a
credit under this subchapter is equal to:
(1) on the first two reports for which the taxable
entity may claim the credit, 35 percent of the total cost of
acquiring and installing the air quality monitoring devices; and
(2) on the next three reports on which the taxable
entity may claim the credit, 10 percent of the total cost of
acquiring and installing the air quality monitoring devices.
(b) The taxable entity must claim the credit on consecutive
reports.
(c) The total credit claimed under this subchapter for a
report may not exceed the amount of franchise tax due after any
other applicable credits.
(d) A taxable entity may not convey, assign, or transfer a
credit under this subchapter to another entity unless all of the
assets of the taxable entity are conveyed, assigned, or transferred
in the same transaction.
Sec. 171.905. APPLICATION FOR CREDIT. A taxable entity
must apply for a credit under this subchapter on or with the tax
report for the period for which the credit is claimed. The taxable
entity shall file with the report a certification from the
commission confirming that the taxable entity provided the
commission a copy of the records on the measuring and monitoring of
the emissions as required by Section 171.903(a).
Sec. 171.906. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
SECTION 2. This Act applies to a report originally due on or
after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.