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".