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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.