LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 May 9, 2001 TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance FROM: John Keel, Director, Legislative Budget Board IN RE: HB2845 by Danburg (Relating to the creation of an initiative to promote the commercialization of fuel cell technologies, including tax exemptions and reductions for certain corporations.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would mandate that the State Energy Conservation Office, with assistance and support from the Texas Natural Resource Conservation Commission, Public Utility Commission, and other state and local agencies, develop a statewide plan to accelerate the commercialization of fuel cells in Texas. This portion of the bill would have no effect on state or local revenues and would not authorize the use of state or local funds. The bill would also exempt from the franchise tax those corporations engaged solely in the business of manufacturing, selling, or installing fuel cell devices. The bill would allow a corporation to deduct from its apportioned taxable capital the amortized cost of a fuel cell device or from its apportioned taxable earned surplus 10 percent of the amortized cost of a fuel cell device. The Comptroller's office indicates that the current commercial market for fuel cell devices is such that no significant fiscal impact would be anticipated in fiscal 2002 and 2003. After 2003, the development of fuel cell markets and the corresponding effect on franchise tax incentives cannot be estimated by the Comptroller's office. The bill would take effect September 1, 2001. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, CL, SF