| 1 | 1 | | 81R10982 CBH-D |
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| 2 | 2 | | By: Lucio III H.B. No. 4639 |
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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 franchise tax credit for certain investments made in |
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| 8 | 8 | | relation to certain renewable energy technology systems. |
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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. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter V to read as follows: |
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| 12 | 12 | | SUBCHAPTER V. TAX CREDIT FOR INVESTMENTS IN CERTAIN RENEWABLE |
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| 13 | 13 | | ENERGY TECHNOLOGY SYSTEMS |
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| 14 | 14 | | Sec. 171.901. DEFINITIONS. In this subchapter: |
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| 15 | 15 | | (1) "Actual cost" means the costs related to a |
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| 16 | 16 | | renewable energy technology system, including the cost of |
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| 17 | 17 | | accessories and installation, after deducting any incentives |
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| 18 | 18 | | relating to the system or costs for which any other type of tax |
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| 19 | 19 | | credit is claimed. |
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| 20 | 20 | | (2) "Renewable energy technology system" means an |
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| 21 | 21 | | identifiable facility, apparatus, or equipment that converts a |
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| 22 | 22 | | renewable source of energy into: |
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| 23 | 23 | | (A) a usable source of thermal or mechanical |
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| 24 | 24 | | energy; |
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| 25 | 25 | | (B) electricity; or |
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| 26 | 26 | | (C) fuel. |
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| 27 | 27 | | (3) "Renewable source of energy" means energy |
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| 28 | 28 | | generated from: |
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| 29 | 29 | | (A) the wind; or |
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| 30 | 30 | | (B) the sun, including solar thermal energy and |
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| 31 | 31 | | photovoltaic energy. |
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| 32 | 32 | | Sec. 171.902. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 33 | 33 | | entitled to a credit in the amount and under the conditions and |
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| 34 | 34 | | limitations provided by this subchapter against the tax imposed |
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| 35 | 35 | | under this chapter. |
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| 36 | 36 | | Sec. 171.903. QUALIFICATION. A taxable entity qualifies |
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| 37 | 37 | | for a credit under this subchapter only if the taxable entity |
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| 38 | 38 | | installs and places into service in this state a new renewable |
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| 39 | 39 | | energy technology system. |
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| 40 | 40 | | Sec. 171.904. AMOUNT; LIMITATIONS. (a) The amount of a |
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| 41 | 41 | | credit under this subchapter for a renewable energy technology |
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| 42 | 42 | | system that uses wind-powered energy is equal to the lesser of 20 |
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| 43 | 43 | | percent of the actual cost of the system or $500,000. |
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| 44 | 44 | | (b) The amount of a credit under this subchapter for a |
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| 45 | 45 | | renewable energy technology system that uses solar thermal energy |
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| 46 | 46 | | is equal to the lesser of 35 percent of the actual cost of the system |
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| 47 | 47 | | or $250,000. |
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| 48 | 48 | | (c) The amount of a credit under this subchapter for a |
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| 49 | 49 | | renewable energy technology system that uses photovoltaic energy is |
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| 50 | 50 | | equal to the lesser of 35 percent of the actual cost of the system or |
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| 51 | 51 | | $500,000. |
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| 52 | 52 | | (d) The taxable entity must claim a credit under this |
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| 53 | 53 | | subchapter on the report based on the accounting period during |
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| 54 | 54 | | which the taxable entity first places the new renewable energy |
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| 55 | 55 | | technology system into service in this state. |
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| 56 | 56 | | (e) The total credit claimed under this subchapter for a |
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| 57 | 57 | | report may not exceed the amount of franchise tax due after any |
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| 58 | 58 | | other applicable credits. |
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| 59 | 59 | | Sec. 171.905. CARRYFORWARD. (a) If a taxable entity is |
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| 60 | 60 | | eligible for a credit that exceeds the limitation under Section |
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| 61 | 61 | | 171.904(e), the taxable entity may carry the unused credit forward |
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| 62 | 62 | | for consecutive reports. |
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| 63 | 63 | | (b) A carryforward is considered the remaining portion of a |
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| 64 | 64 | | credit that cannot be claimed in the current year because of the |
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| 65 | 65 | | limitation under Section 171.904(e). A carryforward is added to |
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| 66 | 66 | | the next year's credit in determining whether the limitation is met |
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| 67 | 67 | | for that year. A credit carryforward from a previous report is |
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| 68 | 68 | | considered to be used before the current year credit. |
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| 69 | 69 | | Sec. 171.906. ASSIGNMENT PROHIBITED. A taxable entity may |
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| 70 | 70 | | not convey, assign, or transfer the credit allowed under this |
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| 71 | 71 | | subchapter to another entity unless all of the assets of the taxable |
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| 72 | 72 | | entity are conveyed, assigned, or transferred. |
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| 73 | 73 | | Sec. 171.907. RULES. The comptroller shall adopt rules |
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| 74 | 74 | | necessary to implement this subchapter. |
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| 75 | 75 | | SECTION 2. This Act applies only to a report originally due |
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| 76 | 76 | | on or after the effective date of this Act. |
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| 77 | 77 | | SECTION 3. This Act takes effect January 1, 2010. |
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