BILL ANALYSIS

H.B. 2226

By: Parker

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The alternative energy industry is rapidly growing due to the current depletion of nonrenewable energy resources accompanied by Texas' growing population. This strong emerging sector of our state's economy encourages job creation and innovative methods for energy conservation.  In an effort to promote alternative energy use in Texas, this bill exempts the sales tax for solar and wind devices on Memorial Day weekend.

H.B. 2226 exempts solar and wind energy devices purchased for noncommercial use from sales tax on Memorial Day weekend.

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

H.B. 2226 amends the Tax Code by exempting the sale of a solar or wind energy device purchased for noncommercial home or personal use from sales tax if the sale takes place during a period beginning at 12:01 a.m. on the Saturday preceding the last Monday in May (Memorial Day) and ending at 11:59 p.m. on the last Monday in May.  The bill requires the purchaser to give the seller an exemption certificate that certifies in writing to the seller that the solar or wind energy device qualifies as exempt.  The bill defines "solar energy device" and "wind energy device."

EFFECTIVE DATE

September 1, 2009.