| 1 | 1 | | 89R2669 CJD-D |
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| 2 | 2 | | By: West S.B. No. 214 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to a temporary exemption from sales and use taxes for |
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| 10 | 10 | | certain residential heating, ventilation, and air conditioning |
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| 11 | 11 | | systems and installation services. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 14 | 14 | | by adding Section 151.360 to read as follows: |
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| 15 | 15 | | Sec. 151.360. TEMPORARY EXEMPTION FOR CERTAIN RESIDENTIAL |
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| 16 | 16 | | HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS. (a) Subject |
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| 17 | 17 | | to the conditions of this section, the sale and installation of a |
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| 18 | 18 | | residential heating, ventilation, and air conditioning system is |
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| 19 | 19 | | exempted from the taxes imposed by this chapter if: |
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| 20 | 20 | | (1) except as provided by Subsection (b), the sale |
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| 21 | 21 | | takes place on or after March 1, 2026, and before September 1, 2027; |
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| 22 | 22 | | and |
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| 23 | 23 | | (2) the system: |
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| 24 | 24 | | (A) is used for the purchaser's primary |
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| 25 | 25 | | single-family residence; |
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| 26 | 26 | | (B) has a minimum Seasonal Energy Efficiency |
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| 27 | 27 | | Rating (SEER) of 14 SEER; |
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| 28 | 28 | | (C) is designated as an Energy Star qualified |
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| 29 | 29 | | product under the Energy Star program jointly operated by the |
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| 30 | 30 | | United States Environmental Protection Agency and the United States |
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| 31 | 31 | | Department of Energy; and |
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| 32 | 32 | | (D) is installed by a person licensed under |
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| 33 | 33 | | Subchapter F or G, Chapter 1302, Occupations Code, to engage in air |
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| 34 | 34 | | conditioning and refrigeration contracting. |
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| 35 | 35 | | (b) If the cost of installation is not included in the sales |
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| 36 | 36 | | price of a residential heating, ventilation, and air conditioning |
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| 37 | 37 | | system described by Subsection (a), the sales price of the |
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| 38 | 38 | | installation is exempted from the taxes imposed by this chapter if |
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| 39 | 39 | | the installation occurs not later than the 90th day after the date |
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| 40 | 40 | | of the sale of the system. |
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| 41 | 41 | | (c) This section does not apply to the sale and installation |
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| 42 | 42 | | of a residential heating, ventilation, and air conditioning system |
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| 43 | 43 | | that is installed or intended to be installed in a: |
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| 44 | 44 | | (1) rental or commercial property; or |
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| 45 | 45 | | (2) structure or improvement that is constructed less |
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| 46 | 46 | | than one year before the date of the sale. |
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| 47 | 47 | | (d) Not later than November 1, 2025, the comptroller shall |
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| 48 | 48 | | prescribe and make available on the comptroller's Internet website |
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| 49 | 49 | | an exemption certificate on which a person can certify and attest |
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| 50 | 50 | | that a sale: |
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| 51 | 51 | | (1) satisfies the conditions of Subsection (a) or (b), |
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| 52 | 52 | | as applicable; and |
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| 53 | 53 | | (2) is a sale to which this section applies. |
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| 54 | 54 | | (e) For a sale to be eligible for the exemption provided by |
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| 55 | 55 | | this section, the purchaser must provide to the seller at the time |
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| 56 | 56 | | of the sale a completed and signed exemption certificate described |
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| 57 | 57 | | by Subsection (d). A sale is not exempt under this section, and the |
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| 58 | 58 | | seller shall collect any tax imposed under this chapter, if the |
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| 59 | 59 | | purchaser does not provide an exemption certificate in the manner |
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| 60 | 60 | | described by this subsection. |
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| 61 | 61 | | (f) If a purchaser who gives an exemption certificate under |
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| 62 | 62 | | Subsection (e) makes any use of the heating, ventilation, and air |
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| 63 | 63 | | conditioning system or installation services that does not qualify |
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| 64 | 64 | | for the exemption provided by this section, the purchaser is liable |
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| 65 | 65 | | for payment of the sales tax on the original purchase price of the |
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| 66 | 66 | | system or installation. |
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| 67 | 67 | | (g) This section expires December 31, 2027. |
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| 68 | 68 | | SECTION 2. This Act takes effect immediately if it receives |
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| 69 | 69 | | a vote of two-thirds of all the members elected to each house, as |
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| 70 | 70 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 71 | 71 | | Act does not receive the vote necessary for immediate effect, this |
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| 72 | 72 | | Act takes effect September 1, 2025. |
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