89R2669 CJD-D
By: West S.B. No. 214
A BILL TO BE ENTITLED
AN ACT
relating to a temporary exemption from sales and use taxes for
certain residential heating, ventilation, and air conditioning
systems and installation services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.360 to read as follows:
Sec. 151.360. TEMPORARY EXEMPTION FOR CERTAIN RESIDENTIAL
HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS. (a) Subject
to the conditions of this section, the sale and installation of a
residential heating, ventilation, and air conditioning system is
exempted from the taxes imposed by this chapter if:
(1) except as provided by Subsection (b), the sale
takes place on or after March 1, 2026, and before September 1, 2027;
and
(2) the system:
(A) is used for the purchaser's primary
single-family residence;
(B) has a minimum Seasonal Energy Efficiency
Rating (SEER) of 14 SEER;
(C) is designated as an Energy Star qualified
product under the Energy Star program jointly operated by the
United States Environmental Protection Agency and the United States
Department of Energy; and
(D) is installed by a person licensed under
Subchapter F or G, Chapter 1302, Occupations Code, to engage in air
conditioning and refrigeration contracting.
(b) If the cost of installation is not included in the sales
price of a residential heating, ventilation, and air conditioning
system described by Subsection (a), the sales price of the
installation is exempted from the taxes imposed by this chapter if
the installation occurs not later than the 90th day after the date
of the sale of the system.
(c) This section does not apply to the sale and installation
of a residential heating, ventilation, and air conditioning system
that is installed or intended to be installed in a:
(1) rental or commercial property; or
(2) structure or improvement that is constructed less
than one year before the date of the sale.
(d) Not later than November 1, 2025, the comptroller shall
prescribe and make available on the comptroller's Internet website
an exemption certificate on which a person can certify and attest
that a sale:
(1) satisfies the conditions of Subsection (a) or (b),
as applicable; and
(2) is a sale to which this section applies.
(e) For a sale to be eligible for the exemption provided by
this section, the purchaser must provide to the seller at the time
of the sale a completed and signed exemption certificate described
by Subsection (d). A sale is not exempt under this section, and the
seller shall collect any tax imposed under this chapter, if the
purchaser does not provide an exemption certificate in the manner
described by this subsection.
(f) If a purchaser who gives an exemption certificate under
Subsection (e) makes any use of the heating, ventilation, and air
conditioning system or installation services that does not qualify
for the exemption provided by this section, the purchaser is liable
for payment of the sales tax on the original purchase price of the
system or installation.
(g) This section expires December 31, 2027.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.