| 1 | 1 | | 87S30388 CJC-D |
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| 2 | 2 | | By: Crockett H.B. No. 130 |
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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 credit against the ad valorem taxes imposed on |
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| 8 | 8 | | property on which certain solar energy devices have been installed. |
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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 31, Tax Code, is amended by adding |
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| 11 | 11 | | Section 31.039 to read as follows: |
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| 12 | 12 | | Sec. 31.039. TAX CREDIT FOR SOLAR ENERGY DEVICE ACQUISITION |
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| 13 | 13 | | AND INSTALLATION COSTS. (a) In this section, "solar energy device" |
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| 14 | 14 | | has the meaning assigned by Section 11.27. |
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| 15 | 15 | | (b) A person who owns real property and installs a solar |
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| 16 | 16 | | energy device on the property is entitled to a credit against the |
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| 17 | 17 | | taxes imposed on the property by each taxing unit that taxes the |
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| 18 | 18 | | property. |
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| 19 | 19 | | (c) The amount of the credit to which a property owner is |
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| 20 | 20 | | entitled under this section against the taxes imposed in a tax year |
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| 21 | 21 | | on the property by a taxing unit is computed by: |
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| 22 | 22 | | (1) dividing the amount of taxes imposed on the |
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| 23 | 23 | | property by the taxing unit by the total amount of taxes imposed on |
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| 24 | 24 | | the property by all of the taxing units that tax the property; and |
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| 25 | 25 | | (2) multiplying the amount determined under |
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| 26 | 26 | | Subdivision (1) by the lesser of the following amounts: |
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| 27 | 27 | | (A) an amount equal to one-sixth of the total |
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| 28 | 28 | | cost incurred by the property owner in acquiring the solar energy |
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| 29 | 29 | | device and installing the device on the property; or |
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| 30 | 30 | | (B) $2,500. |
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| 31 | 31 | | (d) A property owner may receive a credit under this section |
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| 32 | 32 | | against the taxes imposed on the property by a taxing unit until the |
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| 33 | 33 | | first tax year after the sixth tax year in which the property owner |
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| 34 | 34 | | receives the credit. |
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| 35 | 35 | | (e) To receive a credit under this section, a property owner |
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| 36 | 36 | | must file an application with the chief appraiser of the appraisal |
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| 37 | 37 | | district in which the property is located. The application must |
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| 38 | 38 | | include the total cost incurred by the property owner in acquiring |
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| 39 | 39 | | and installing the solar energy device. |
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| 40 | 40 | | (f) The chief appraiser shall forward a copy of the |
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| 41 | 41 | | application to the assessor for each taxing unit that taxes the |
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| 42 | 42 | | property. The assessors for the taxing units shall consult with one |
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| 43 | 43 | | another as necessary to compute the amount of the credit to be |
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| 44 | 44 | | granted by each taxing unit. |
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| 45 | 45 | | (g) A credit provided by this section, once allowed, need |
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| 46 | 46 | | not be claimed in subsequent years and applies to the property |
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| 47 | 47 | | regardless of any subsequent change in ownership of the property. |
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| 48 | 48 | | (h) The comptroller shall adopt rules for the |
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| 49 | 49 | | administration of this section, including rules prescribing the |
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| 50 | 50 | | form of an application for the credit. |
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| 51 | 51 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 52 | 52 | | for a tax year beginning on or after the effective date of this Act. |
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| 53 | 53 | | SECTION 3. This Act takes effect January 1, 2023, but only |
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| 54 | 54 | | if the constitutional amendment proposed by the 87th Legislature, |
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| 55 | 55 | | 3rd Called Session, 2021, to authorize the legislature to provide |
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| 56 | 56 | | for a credit against the ad valorem taxes imposed on property on |
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| 57 | 57 | | which a solar energy device has been installed based on the cost of |
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| 58 | 58 | | acquiring and installing the device is approved by the voters. If |
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| 59 | 59 | | that amendment is not approved by the voters, this Act has no |
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| 60 | 60 | | effect. |
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