BILL ANALYSIS

C.S.H.B. 791

By: Burnam

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Energy efficiency saves consumers money and reduces the need for new power generation.  As Texans face dramatic increases in energy costs,  the expanded use of energy-efficient appliances could help to mitigate the impact of those price increases. This bill seeks to encourage Texans to purchase energy-efficient products as designated by the Energy Star program operated by the U.S. Environmental Protection Agency and the U.S. Department of Energy.

C.S.H.B. 791 expands the periods during which a sales tax exemption is given on certain Energy Star appliances to include Labor Day.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 791 amends the Tax Code to add Labor Day to the periods during which the sale of certain energy-efficient products are exempt from the state sales tax. The bill specifies the period as beginning at 12:01 a.m. on the first Monday in September and ending at 11:59 p.m. on the first Monday in September.

EFFECTIVE DATE

July 1, 2009, or, if the act does not receive the necessary vote, the act takes effect October 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 791 differs from the original by adding Labor Day to the periods during which the sale of certain energy-efficient products are exempt from the state sales tax, whereas the original adds the period around July 4.