HBA-CBW S.B. 857 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 857
By: Madla
Ways & Means
5/8/2001
Engrossed



BACKGROUND AND PURPOSE 

In 1975, the Texas Legislature passed a sales tax exemption for solar
energy devices.  Coupled with a federal tax credit the incentives in the
mid-1970s began to fuel the growth of the solar industry market. The
federal tax credits that helped subsidize the state exemption ended by
1985.  In 1987,  the legislature began repealing tax exemptions, including
exemptions for renewable energy devices used for  residential and
commercial usage, which caused the renewable energy industry to lose
momentum.  Senate Bill 857 exempts from limited sales, excise, and use
taxes the sale or use of a renewable energy device. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 857 amends the Tax Code to exempt from limited sales, excise,
and use taxes the sale or use of a renewable energy device, including the
device's component parts and repair or replacement parts. 

These provisions expire August 31, 2003.

EFFECTIVE DATE

July 1,  2001, or if the Act does not receive the necessary vote, the Act
takes effect October 1, 2001.