82R7919 JE-D
By: Farrar H.B. No. 1849
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax deduction for the cost of certain
sustainable commercial buildings.
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 SUSTAINABLE BUILDING
FROM MARGIN APPORTIONED TO THIS STATE. (a) In this section,
"energy office" means the State Energy Conservation Office.
(b) A taxable entity may deduct from its apportioned margin
10 percent of the amortized cost of a commercial building if:
(1) the building is a sustainable building certified
by the energy office under Subsection (e);
(2) the building is constructed by the taxable entity;
(3) the building is located in this state; and
(4) the cost of the building is amortized in
accordance with Subsection (c).
(c) The amortization of the cost of a sustainable building
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 building is placed
in service; and
(4) cover only a period in which the building is in
use.
(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:
(1) certification by the energy office under
Subsection (e); and
(2) the cost of the building.
(e) The energy office shall certify a sustainable building
that meets the standards adopted by the energy office under
Subsection (f).
(f) The energy office shall:
(1) adopt and update as necessary energy efficiency
and conservation standards for the construction of a sustainable
building that initially match those of a silver certification for a
commercial building under the Leadership in Energy and
Environmental Design (LEED) rating system as it exists on January
1, 2011; and
(2) adopt rules to implement this section.
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, 2012.