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A BILL TO BE ENTITLED
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AN ACT
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relating to a deduction under the franchise tax for certain |
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renewable energy devices. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended |
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by adding Section 171.1075 to read as follows: |
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Sec. 171.1075. DEDUCTION OF COST OF CERTAIN RENEWABLE |
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ENERGY DEVICES FROM MARGIN APPORTIONED TO THIS STATE. (a) In this |
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section: |
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(1) "Renewable energy device" means a device that |
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exclusively uses one or more renewable energy technologies to |
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generate electricity. The term does not include a solar energy |
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device as that term is defined by Section 171.107(a). |
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(2) "Renewable energy technology" has the meaning |
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assigned by Section 39.904(d), Utilities Code. |
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(3) "Retail customer" has the meaning assigned by |
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Section 31.002, Utilities Code. |
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(b) A taxable entity that is a retail customer may deduct |
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from the taxable entity's apportioned margin 10 percent of the |
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amortized cost of a renewable energy device if: |
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(1) the device is acquired by the taxable entity for |
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heating and cooling or for the production of power for the taxable |
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entity; |
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(2) the device is used in this state by the taxable |
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entity; and |
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(3) the cost of the device is amortized in accordance |
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with Subsection (c). |
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(c) The amortization of the cost of a renewable energy |
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device must: |
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(1) be for a period of at least 60 months; |
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(2) provide for equal monthly amounts or conform to |
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federal depreciation schedules; |
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(3) begin on the month in which the device is placed in |
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service in this state; and |
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(4) cover only a period in which the device is in use |
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in this state. |
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(d) A taxable entity that makes a deduction under this |
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section shall file with the comptroller an amortization schedule |
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showing the period in which a deduction is to be made. On the |
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request of the comptroller, the taxable entity shall file with the |
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comptroller proof of the cost of the renewable energy device or |
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proof of the device's operation in this state. |
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SECTION 2. This Act applies only to a report originally due |
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on or after January 1, 2010. |
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SECTION 3. This Act takes effect January 1, 2010. |