TO: | Honorable Jim Keffer, Chair, House Committee on Ways & Means |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB161 by McCall (Relating to an exemption from the sales tax for nonvehicular fuel cells.), Committee Report 1st House, Substituted |
The bill would exempt fuel cells from the sales tax. Under current law, power generation equipment is exempted from the sales tax under Section 151.318 of the Tax Code; and the purchase of such equipment does not generate revenue for the state. The cost of fuel cells relative to other forms of power generation would not be expected to lead to widespread adoption of the technology outside the utility industry. Therefore, the sales tax exemption for fuel cells used for power generation would not have a significant fiscal impact on the state.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, SD, WP, SM
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