81R10982 CBH-D
By: Lucio III H.B. No. 4639
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for certain investments made in
relation to certain renewable energy technology systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter V to read as follows:
SUBCHAPTER V. TAX CREDIT FOR INVESTMENTS IN CERTAIN RENEWABLE
ENERGY TECHNOLOGY SYSTEMS
Sec. 171.901. DEFINITIONS. In this subchapter:
(1) "Actual cost" means the costs related to a
renewable energy technology system, including the cost of
accessories and installation, after deducting any incentives
relating to the system or costs for which any other type of tax
credit is claimed.
(2) "Renewable energy technology system" means an
identifiable facility, apparatus, or equipment that converts a
renewable source of energy into:
(A) a usable source of thermal or mechanical
energy;
(B) electricity; or
(C) fuel.
(3) "Renewable source of energy" means energy
generated from:
(A) the wind; or
(B) the sun, including solar thermal energy and
photovoltaic energy.
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 taxable entity qualifies
for a credit under this subchapter only if the taxable entity
installs and places into service in this state a new renewable
energy technology system.
Sec. 171.904. AMOUNT; LIMITATIONS. (a) The amount of a
credit under this subchapter for a renewable energy technology
system that uses wind-powered energy is equal to the lesser of 20
percent of the actual cost of the system or $500,000.
(b) The amount of a credit under this subchapter for a
renewable energy technology system that uses solar thermal energy
is equal to the lesser of 35 percent of the actual cost of the system
or $250,000.
(c) The amount of a credit under this subchapter for a
renewable energy technology system that uses photovoltaic energy is
equal to the lesser of 35 percent of the actual cost of the system or
$500,000.
(d) The taxable entity must claim a credit under this
subchapter on the report based on the accounting period during
which the taxable entity first places the new renewable energy
technology system into service in this state.
(e) The total credit claimed under this subchapter for a
report may not exceed the amount of franchise tax due after any
other applicable credits.
Sec. 171.905. CARRYFORWARD. (a) If a taxable entity is
eligible for a credit that exceeds the limitation under Section
171.904(e), the taxable entity may carry the unused credit forward
for consecutive reports.
(b) A carryforward is considered the remaining portion of a
credit that cannot be claimed in the current year because of the
limitation under Section 171.904(e). A carryforward is added to
the next year's credit in determining whether the limitation is met
for that year. A credit carryforward from a previous report is
considered to be used before the current year credit.
Sec. 171.906. ASSIGNMENT PROHIBITED. A taxable entity may
not convey, assign, or transfer the credit allowed under this
subchapter to another entity unless all of the assets of the taxable
entity are conveyed, assigned, or transferred.
Sec. 171.907. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.