79R8242 JJT-D


By:  McCall, Strama, Edwards, Paxton                              H.B. No. 161

Substitute the following for H.B. No. 161:                                    

By:  Grusendorf                                               C.S.H.B. No. 161



A BILL TO BE ENTITLED

AN ACT

relating to an exemption from the sales tax for nonvehicular fuel 
cells.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended 
by adding Section 151.356 to read as follows:
	Sec. 151.356.  NONVEHICULAR FUEL CELLS.  (a)  In this 
section, "fuel cell" means a device that uses fuel, oxygen, and a 
catalyst to generate electricity by electrochemical means.
	(b)  The sale, use, or other consumption of a fuel cell is 
exempted from the taxes imposed by this chapter unless the fuel cell 
is designed to be the source of motive power of a vehicle or 
provides the motive power of a vehicle.
	(c)  This section expires January 1, 2013.                              
	SECTION 2.  This Act takes effect September 1, 2005.