Amend CSHB 3928 as follows:
(1) Add the following appropriately numbered SECTION to the bill and renumber subsequent SECTIONS of the bill accordingly:
SECTION ____. (a) Chapter 171, Tax Code, is amended by
adding Subchapter Y to read as follows:
SUBCHAPTER Y. TAX CREDIT FOR INSTALLATION OF
RESIDENTIAL SOLAR ELECTRIC SYSTEMS
Sec. 171.961. DEFINITIONS. In this section:
(1) "Commission" means the Public Utility Commission
of Texas.
(2) "Participant" means a taxable entity that
participates in the pilot program established under Section
171.964.
(3) "Solar electric system" means a device that:
(A) uses solar resources to generate
electricity;
(B) has a generating capacity of not more than
1,000 kilowatts; and
(C) is installed with a five-year warranty
against breakdown or undue degradation.
Sec. 171.962. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions and
limitations provided by this subchapter against the tax imposed
under this chapter.
Sec. 171.963. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if:
(1) the taxable entity's primary business activity is
the building of residential housing developments;
(2) the taxable entity is selected to participate in
the pilot program established under Section 171.964; and
(3) as a participant in the pilot program, the taxable
entity establishes one new residential housing development in which
every house in the development is equipped with solar electric
systems.
Sec. 171.964. PILOT PROGRAM FOR RESIDENTIAL SOLAR ELECTRIC
SYSTEMS. (a) The commission shall develop by rule and implement a
pilot program under which a taxable entity that is a residential
housing builder or developer is eligible for a credit against the
tax imposed under this chapter for the cost of installing solar
electric systems in each house in a new residential housing
development the builder or developer establishes during the period
of the pilot program.
(b) Not more than four taxable entities may participate in
the pilot program. The commission shall select the participants
through a competitive bidding process.
(c) In developing the pilot program, the commission shall
establish:
(1) the period during which the program will operate;
and
(2) in consultation with the comptroller, procedures
by which a participant may establish the amounts expended during an
accounting period for the cost of installing solar electric systems
in the housing development.
Sec. 171.965. AMOUNT; LIMITATIONS. (a) Subject to
Subsection (b), the amount of the credit is equal to the amounts
expended by a participant for the cost of installing solar electric
systems in the new housing development established by the
participant.
(b) The credit claimed for each privilege period may not
exceed the amount of franchise tax due, before any other applicable
tax credits, for the privilege period. A taxable entity may not
claim the credit for more than two successive privilege periods,
and the total credit claimed for two successive privilege periods
may not exceed $5 million.
(c) A taxable entity may claim a credit under this
subchapter for an expenditure made during an accounting period only
against the tax owed for the corresponding privilege period.
(d) A taxable entity may not carry over an expenditure made
during a privilege period to a subsequent privilege period.
(e) A taxable entity may not convey, assign, or transfer a
credit under this subchapter to another entity unless all of the
assets of the taxable entity are conveyed, assigned, or transferred
in the same transaction.
Sec. 171.966. APPLICATION FOR CREDIT. A taxable entity
must apply for a credit under this subchapter on or with the tax
report for the period for which the credit is claimed.
Sec. 171.967. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
Sec. 171.968. EXPIRATION. This subchapter expires January
1, 2011.
(b) The Public Utility Commission of Texas shall implement
the pilot program for residential solar electric systems under
Section 171.964, Tax Code, as added by this section, as soon as
possible after the effective date of this section.
(2) On page 10, line 11, strike "$600,000" and substitute
"$575,000".