81R27630 JE-D
By: Alvarado, Howard of Fort Bend, H.B. No. 3119
Villarreal, Taylor, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a pilot program to provide certain
taxable entities with a franchise tax credit for the acquisition
and installation of certain air quality monitoring devices to
monitor 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. PILOT PROGRAM: TAX CREDIT FOR ACQUISITION AND
INSTALLATION OF CERTAIN AIR QUALITY MONITORING DEVICES
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
monitor 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.).
(5) "Nonattainment area" means an area designated
under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section
7407).
Sec. 171.902. FRANCHISE TAX CREDIT PILOT PROGRAM FOR
CERTAIN TAXABLE ENTITIES. The comptroller shall develop and
implement a pilot program to:
(1) provide a qualified taxable entity with a
franchise tax credit for the acquisition and installation of
certain air quality monitoring devices to monitor the emission of
air contaminants; and
(2) evaluate the feasibility of extending the program
and expanding it to apply statewide.
Sec. 171.903. 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. 171.904. QUALIFICATION. (a) A taxable entity
qualifies for a credit under this subchapter if the taxable entity:
(1) maintains monitoring of the emission of air
contaminants from a major source that is located in the
nonattainment area;
(2) maintains records that must include the date,
time, and findings of 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 quality
monitoring data on-site for review by the commission, including
data on:
(1) each hazardous air pollutant listed under Section
112 of the federal Clean Air Act (42 U.S.C. Section 7412) 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. 171.905. 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. 171.906. 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 171.904(a).
Sec. 171.907. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
Sec. 171.908. EVALUATION OF PILOT PROGRAM. The comptroller
shall evaluate the effectiveness of the pilot program established
under this subchapter and report the results of the evaluation to
the legislature not later than February 1, 2013. The report shall
include:
(1) the number of taxable entities claiming the credit
under this subchapter;
(2) the total amount of credits claimed under this
subchapter;
(3) the comptroller's recommendations regarding:
(A) the extension of the air quality monitoring
device tax credit program and the expansion of the program
statewide; and
(B) methods to enhance the effectiveness,
simplicity, or any other aspect of the program; and
(4) any other information the comptroller considers
meaningful and appropriate.
Sec. 171.909. TERMINATION OF PILOT PROGRAM; EXPIRATION OF
SUBCHAPTER. (a) The pilot program terminates and this subchapter
expires December 31, 2012.
(b) The expiration of this subchapter does not affect a
credit that was established under this subchapter before the date
this subchapter expires. A taxable entity that has any unused
credits established under this subchapter may continue to apply
those credits on or with each consecutive report until the date the
credit would have expired under this subchapter had this subchapter
not expired, and this subchapter is continued in effect for the
purposes of determining the amount of the credit the taxable entity
may claim and the manner in which the taxable entity may claim the
credit.
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.