By McCall H.B. No. 2301
74R6730 DAK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the manufacturing equipment sales
1-3 tax exemption to fabrication in a cleanroom environment of
1-4 semiconductor products.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 151.318, Tax Code, is amended by amending
1-7 Subsection (a) and adding Subsection (q) to read as follows:
1-8 (a) The following items are exempted from the taxes imposed
1-9 by this chapter:
1-10 (1) tangible personal property that will become an
1-11 ingredient or component part of tangible personal property
1-12 manufactured, processed, or fabricated for ultimate sale;
1-13 (2) tangible personal property used or consumed in or
1-14 during the actual manufacturing, processing, or fabrication of
1-15 tangible personal property for ultimate sale if the use or
1-16 consumption of the property is necessary or essential to the
1-17 manufacturing, processing, or fabrication operation; <and>
1-18 (3) services performed directly on the product being
1-19 manufactured prior to its distribution for sale and for the purpose
1-20 of making the product more marketable; and
1-21 (4) tangible personal property utilized in connection
1-22 with the manufacturing, processing, or fabrication in a cleanroom
1-23 environment of semiconductor products.
1-24 (q) Notwithstanding Subsection (c)(2), the exemption
2-1 described by Subsection (a)(4) applies to tangible personal
2-2 property, without regard to whether the property is affixed or
2-3 incorporated into realty or contained in a cleanroom environment,
2-4 used in connection with the manufacturing, processing, or
2-5 fabrication of semiconductor products in a cleanroom environment,
2-6 including:
2-7 (1) integrated systems, fixtures, and piping;
2-8 (2) tangible personal property necessary or adapted
2-9 for the establishment and maintenance of the cleanroom environment,
2-10 including the reduction of contamination or the control of air
2-11 flow, temperature, humidity, vibration, chemical purity, and other
2-12 manufacturing tolerances in the cleanroom environment; and
2-13 (3) production equipment and machinery.
2-14 SECTION 2. This Act clarifies existing law and is not
2-15 intended to enact a substantive change in existing law.
2-16 SECTION 3. The importance of this legislation and the
2-17 crowded condition of the calendars in both houses create an
2-18 emergency and an imperative public necessity that the
2-19 constitutional rule requiring bills to be read on three several
2-20 days in each house be suspended, and this rule is hereby suspended,
2-21 and that this Act take effect and be in force from and after its
2-22 passage, and it is so enacted.