SRC-MKV S.B. 857 77(R)BILL ANALYSIS


Senate Research CenterS.B. 857
By: Madla
Finance
4/20/2001
Committee Report (Amended)


DIGEST AND PURPOSE 

In 1975, the Texas Legislature passed a sales tax exemption for solar
energy devices.  The federal tax credit ended by 1985, and the renewable
energy industry began to lose momentum.  Around the same time the
Legislature began repealing many tax exemptions, including the exemption
for solar energy devices in 1987.  No state financial incentive for
residential or commercial-scale renewable energy devices has been provided
since then.  S.B. 857 exempts renewable energy devices from the sales and
use taxes. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 151H, Tax Code, by adding Section 151.357, as
follows: 

Sec. 151.357.  RENEWABLE ENERGY DEVICES.  (a) Defines "renewable energy"
and "renewable energy device." 

(b) Provides that the sale or use of a renewable energy device, including
its component parts and repair or replacement parts, is exempt from the tax
imposed by this chapter. 

SECTION 2.  Provides that the expiration date of Section 151.357, Tax Code,
as added by this Act, is August 31, 2003. 

SECTION 3.  Effective date: July 1, 2001, or October 1, 2001.
            Makes application of this Act prospective.

SUMMARY OF COMMITTEE CHANGES

Differs from original in SECTION 1, Section 151.357(2), by adding language
to the definition of "renewable energy device" to provide that the term
does not include air-source heat pump systems. Further differs by adding a
new SECTION 2 providing that the expiration date of Section 151.357, Tax
Code, as added by this Act, is August 31, 2003.  Redesignates original
SECTION 2 as SECTION 3.