| 1 | 1 | | By: Crockett H.B. No. 205 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to a credit against the ad valorem taxes imposed on |
|---|
| 7 | 7 | | property on which certain solar energy devices have been installed. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Chapter 31, Tax Code, is amended by adding |
|---|
| 10 | 10 | | Section 31.039 to read as follows: |
|---|
| 11 | 11 | | Sec. 31.039. TAX CREDIT FOR SOLAR ENERGY DEVICE ACQUISITION |
|---|
| 12 | 12 | | AND INSTALLATION COSTS. (a) In this section, "solar energy device" |
|---|
| 13 | 13 | | has the meaning assigned by Section 11.27. |
|---|
| 14 | 14 | | (b) A person who owns real property and installs a solar |
|---|
| 15 | 15 | | energy device on the property is entitled to a credit against the |
|---|
| 16 | 16 | | taxes imposed on the property by each taxing unit that taxes the |
|---|
| 17 | 17 | | property. |
|---|
| 18 | 18 | | (c) The amount of the credit to which a property owner is |
|---|
| 19 | 19 | | entitled under this section against the taxes imposed in a tax year |
|---|
| 20 | 20 | | on the property by a taxing unit is computed by: |
|---|
| 21 | 21 | | (1) dividing the amount of taxes imposed on the |
|---|
| 22 | 22 | | property by the taxing unit by the total amount of taxes imposed on |
|---|
| 23 | 23 | | the property by all of the taxing units that tax the property; and |
|---|
| 24 | 24 | | (2) multiplying the amount determined under |
|---|
| 25 | 25 | | Subdivision (1) by the lesser of the following amounts: |
|---|
| 26 | 26 | | (A) an amount equal to one-sixth of the total |
|---|
| 27 | 27 | | cost incurred by the property owner in acquiring the solar energy |
|---|
| 28 | 28 | | device and installing the device on the property; or |
|---|
| 29 | 29 | | (B) $2,500. |
|---|
| 30 | 30 | | (d) A property owner may receive a credit under this section |
|---|
| 31 | 31 | | against the taxes imposed on the property by a taxing unit until the |
|---|
| 32 | 32 | | first tax year after the sixth tax year in which the property owner |
|---|
| 33 | 33 | | receives the credit. |
|---|
| 34 | 34 | | (e) To receive a credit under this section, a property owner |
|---|
| 35 | 35 | | must file an application with the chief appraiser of the appraisal |
|---|
| 36 | 36 | | district in which the property is located. The application must |
|---|
| 37 | 37 | | include the total cost incurred by the property owner in acquiring |
|---|
| 38 | 38 | | and installing the solar energy device. |
|---|
| 39 | 39 | | (f) The chief appraiser shall forward a copy of the |
|---|
| 40 | 40 | | application to the assessor for each taxing unit that taxes the |
|---|
| 41 | 41 | | property. The assessors for the taxing units shall consult with one |
|---|
| 42 | 42 | | another as necessary to compute the amount of the credit to be |
|---|
| 43 | 43 | | granted by each taxing unit. |
|---|
| 44 | 44 | | (g) A credit provided by this section, once allowed, need |
|---|
| 45 | 45 | | not be claimed in subsequent years and applies to the property |
|---|
| 46 | 46 | | regardless of any subsequent change in ownership of the property. |
|---|
| 47 | 47 | | (h) The comptroller shall adopt rules for the |
|---|
| 48 | 48 | | administration of this section, including rules prescribing the |
|---|
| 49 | 49 | | form of an application for the credit. |
|---|
| 50 | 50 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
|---|
| 51 | 51 | | for a tax year beginning on or after the effective date of this Act. |
|---|
| 52 | 52 | | SECTION 3. This Act takes effect January 1, 2022, but only |
|---|
| 53 | 53 | | if the constitutional amendment proposed by the 87th Legislature, |
|---|
| 54 | 54 | | Regular Session, 2021, to authorize the legislature to provide for |
|---|
| 55 | 55 | | a credit against the ad valorem taxes imposed on property on which a |
|---|
| 56 | 56 | | solar energy device has been installed based on the cost of |
|---|
| 57 | 57 | | acquiring and installing the device is approved by the voters. If |
|---|
| 58 | 58 | | that amendment is not approved by the voters, this Act has no |
|---|
| 59 | 59 | | effect. |
|---|