84R8188 ADM-F
By: Rodriguez of Travis H.B. No. 2500
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax deduction for certain energy-generating
equipment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended
by adding Section 171.110 to read as follows:
Sec. 171.110. DEDUCTION OF COST OF COMBINED HEAT AND POWER
PROJECT FROM MARGIN APPORTIONED TO THIS STATE. (a) In this
section, "combined heat and power project" means the construction
or installation of one or more components of a system that is
designed to:
(1) provide the sequential generation of power and
thermal energy for a facility and have an overall efficiency of
energy that exceeds 60 percent;
(2) store thermal energy; or
(3) capture waste heat to generate electricity.
(b) A taxable entity may deduct from its apportioned margin
10 percent of the amortized cost of equipment:
(1) that is used in a combined heat and power project;
(2) that is acquired by the taxable entity for use in
sequential generation of power and thermal energy, storage of
thermal energy, or capture of waste heat for generation of
electricity;
(3) that the taxable entity uses in this state; and
(4) the cost of which is amortized in accordance with
Subsection (c).
(c) The amortization of the cost of capital used in a
combined heat and power project must:
(1) be for a period of at least 60 months;
(2) provide for equal monthly amounts;
(3) begin in the month during which the equipment is
placed in service in this state; and
(4) cover only a period during which the equipment is
used in this state.
(d) A taxable entity that makes a deduction under this
section shall file with the comptroller an amortization schedule
showing the period for which the deduction is to be made. On the
request of the comptroller, the taxable entity shall file with the
comptroller proof of the cost of the equipment or proof of the
equipment's operation in this state.
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, 2016.