By Elkins H.B. No. 1932
77R5111 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tax incentives for the sale, purchase, or use of
1-3 certain clean-fuel vehicles and other motorized equipment.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 152, Tax Code, is amended by
1-6 adding Section 152.094 to read as follows:
1-7 Sec. 152.094. CLEAN-FUEL VEHICLES. (a) In this section,
1-8 "clean-fuel vehicle" means a vehicle that:
1-9 (1) uses a fuel or power source other than gasoline or
1-10 conventional diesel fuel either exclusively or in combination with
1-11 gasoline or conventional diesel fuel; and
1-12 (2) meets the standards for ultra-low emission
1-13 vehicles or zero emission vehicles established under Part C,
1-14 Subchapter II, of the federal Clean Air Act, as amended (42 U.S.C.
1-15 Section 7581 et seq.).
1-16 (b) The taxes imposed by this chapter do not apply to the
1-17 sale or use of a clean-fuel vehicle.
1-18 SECTION 2. Subchapter H, Chapter 151, Tax Code, is amended by
1-19 adding Section 151.3112 to read as follows:
1-20 Sec. 151.3112. ALTERNATIVE FUELS CONSTRUCTION EQUIPMENT. (a)
1-21 In this section:
1-22 (1) "Alternative fuel" means a fuel or power source,
1-23 other than gasoline or conventional diesel fuel, that can be used
1-24 to power a motor. The term includes electricity, compressed
2-1 natural gas, and solar power.
2-2 (2) "Machinery or equipment" includes accessories and
2-3 repair and replacement parts.
2-4 (b) The sale of machinery or equipment used to improve
2-5 realty or in the construction, renovation, or repair of a building
2-6 or other improvement to realty is exempt from the taxes imposed by
2-7 this chapter if the machinery or equipment is:
2-8 (1) motor-driven; and
2-9 (2) the motor is manufactured to be powered by, and is
2-10 powered by, an alternative fuel either exclusively or in
2-11 combination with gasoline or conventional diesel fuel, but not as
2-12 an additive or mixture to gasoline or conventional diesel fuel.
2-13 SECTION 3. (a) This Act takes effect July 1, 2001, if it
2-14 receives a vote of two-thirds of all the members elected to each
2-15 house, as provided by Section 39, Article III, Texas Constitution.
2-16 If this Act does not receive the vote necessary for effect on that
2-17 date, Section 1 of this Act takes effect September 1, 2001, and
2-18 Section 2 of this Act takes effect October 1, 2001.
2-19 (b) The change in law made by this Act does not affect taxes
2-20 imposed before the effective date of this Act, and the law in
2-21 effect before the effective date of this Act is continued in effect
2-22 for purposes of the liability for and collection of those taxes.