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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for the purchase and |
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installation of solar energy devices connected to an electric |
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transmission or distribution system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter X to read as follows: |
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SUBCHAPTER X. TAX CREDIT FOR PURCHASE AND INSTALLATION OF SOLAR |
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ENERGY DEVICES CONNECTED TO AN ELECTRIC TRANSMISSION OR |
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DISTRIBUTION SYSTEM |
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Sec. 171.961. DEFINITIONS. In this subchapter: |
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(1) "Electric cooperative" has the meaning assigned by |
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Section 11.003, Utilities Code. |
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(2) "Electric utility" has the meaning assigned by |
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Section 31.002, Utilities Code. |
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(3) "Municipally owned utility" has the meaning |
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assigned by Section 11.003, Utilities Code. |
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(4) "Retail customer" has the meaning assigned by |
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Section 31.002, Utilities Code. |
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(5) "Retail electric provider" has the meaning |
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assigned by Section 31.002, Utilities Code. |
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(6) "Solar energy device" has the meaning assigned by |
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Section 171.107. |
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Sec. 171.962. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions and |
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limitations provided by this subchapter against the tax imposed |
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under this chapter. |
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Sec. 171.963. QUALIFICATION. A taxable entity that is a |
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retail customer qualifies for a credit under this subchapter if the |
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taxable entity: |
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(1) acquires a solar energy device for the production |
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of power; |
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(2) installs the device in this state on the taxable |
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entity's side of the meter; and |
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(3) connects the device to an electric transmission or |
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distribution system and sells the surplus electricity produced by |
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the device to a retail electric provider or the electric utility, |
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electric cooperative, or municipally owned utility that owns that |
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system. |
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Sec. 171.964. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit under this subchapter is equal to 50 percent of the cost to |
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the taxable entity of acquiring and installing the solar energy |
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device. |
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(b) The total credit claimed for a report may not exceed the |
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amount of franchise tax due for the report before any other |
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applicable tax credits. |
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(c) A taxable entity may not convey, assign, or transfer a |
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credit under this subchapter to another entity unless all of the |
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assets of the taxable entity are conveyed, assigned, or transferred |
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in the same transaction. |
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Sec. 171.965. LENGTH OF CREDIT. A taxable entity must claim |
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the credit under this subchapter in three installments that are as |
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equal as possible over three consecutive reports beginning with the |
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report based on the period during which the taxable entity incurred |
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the cost of acquiring and installing the solar energy device. |
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Sec. 171.966. APPLICATION FOR CREDIT. A taxable entity |
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must apply for a credit under this subchapter on or with the report |
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for the period for which the credit is claimed. |
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Sec. 171.967. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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Sec. 171.968. EXPIRATION. (a) This subchapter expires |
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December 31, 2015. |
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(b) The expiration of this subchapter does not affect a |
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credit that was established under this subchapter before the date |
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this subchapter expires. A taxable entity that has any unused |
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credits established under this subchapter may continue to apply |
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those credits on or with each consecutive report until the date the |
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credit would have expired under this subchapter had this subchapter |
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not expired, and this subchapter is continued in effect for the |
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purposes of determining the amount of the credit the taxable entity |
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may claim and the manner in which the taxable entity may claim the |
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credit. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |