78R2399 SMJ-D
By: Brimer S.B. No. 901
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from the franchise tax for certain
business activities involving wind energy facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 171, Tax Code, is amended
by adding Section 171.088 to read as follows:
Sec. 171.088. EXEMPTION--CORPORATION ENGAGED IN BUSINESS
INVOLVING WIND ENERGY FACILITY. (a) In this section, "wind energy
facility" means a system designed primarily to provide heating or
cooling or to produce electrical or mechanical power by collecting
and transferring wind-generated energy.
(b) A corporation is exempted from the franchise tax if it
is engaged solely in one or more of the following activities:
(1) planning and constructing a wind energy facility,
including the infrastructure necessary to operate the facility or
connect the facility to electricity transmission lines;
(2) operating a wind energy facility; or
(3) marketing:
(A) energy created by a wind energy facility;
(B) environmental attributes of a wind energy
facility; or
(C) credits created by a wind energy facility for
use in a renewable energy credits trading program established under
Section 39.904, Utilities Code.
SECTION 2. This Act takes effect January 1, 2004, and
applies to a report originally due on or after that date.