By: Madla S.B. No. 857 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to exempting renewable energy devices from the sales and 1-3 use tax. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended 1-6 by adding Section 151.357 to read as follows: 1-7 Sec. 151.357. RENEWABLE ENERGY DEVICES. (a) In this 1-8 section: 1-9 (1) "Renewable energy" means an energy source that is 1-10 naturally regenerated over a short time scale and derived directly 1-11 or indirectly from the sun or from other natural movements and 1-12 mechanisms of the environment. The term: 1-13 (A) includes energy derived directly from: 1-14 (i) the sun, wind, water, waves, and 1-15 tides; 1-16 (ii) geothermal forces; and 1-17 (iii) biomass and biomass-derived waste 1-18 products, including landfill gas; and 1-19 (B) does not include energy derived from: 1-20 (i) fossil fuels and waste products from 1-21 fossil fuels; and 1-22 (ii) waste products from inorganic 1-23 sources. 1-24 (2) "Renewable energy device" means that portion of a 1-25 system or series of mechanisms designed primarily to provide 2-1 heating or cooling, to provide liquid or gaseous fuels, or to 2-2 produce electrical or mechanical power by means of collecting, 2-3 transferring, or converting renewable energy. The term includes a 2-4 mechanical or chemical device that has the capacity for storing 2-5 renewable energy for use in heating or cooling, in the production 2-6 of power, or as liquid or gaseous fuels. The term does not include 2-7 air-source heat pump systems. 2-8 (b) The sale or use of a renewable energy device, including 2-9 its component parts and repair or replacement parts, is exempt from 2-10 the tax imposed by this chapter. 2-11 SECTION 2. Section 151.357, Tax Code, as added by this Act, 2-12 expires August 31, 2003. 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, this Act takes effect October 1, 2001. 2-18 (b) The change in law made by this Act does not affect taxes 2-19 imposed before the effective date of this Act, and the law in 2-20 effect before the effective date of this Act is continued in effect 2-21 for purposes of the liability for and collection of those taxes.