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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a pilot program to provide certain |
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taxable entities with a franchise tax credit for the acquisition |
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and installation of certain air quality monitoring devices to |
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monitor the emission of air contaminants. |
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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 U to read as follows: |
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SUBCHAPTER U. PILOT PROGRAM: TAX CREDIT FOR ACQUISITION AND |
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INSTALLATION OF CERTAIN AIR QUALITY MONITORING DEVICES |
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Sec. 171.901. DEFINITIONS. In this subchapter: |
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(1) "Air quality monitoring device" means a device, |
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including a device that employs infrared technology, installed or |
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placed on the perimeter or within the boundaries of a facility to |
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monitor the emission of air contaminants. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality or its successor. |
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(3) "Executive director" means the executive director |
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of the Texas Commission on Environmental Quality. |
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(4) "Major source" has the meaning assigned by Title V |
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of the federal Clean Air Act (42 U.S.C. Section 7661 et seq.). |
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(5) "Nonattainment area" means an area designated |
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under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section |
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7407). |
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Sec. 171.902. FRANCHISE TAX CREDIT PILOT PROGRAM FOR |
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CERTAIN TAXABLE ENTITIES. The comptroller shall develop and |
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implement a pilot program to: |
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(1) provide a qualified taxable entity with a |
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franchise tax credit for the acquisition and installation of |
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certain air quality monitoring devices to monitor the emission of |
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air contaminants; and |
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(2) evaluate the feasibility of extending the program |
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and expanding it to apply statewide. |
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Sec. 171.903. 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. 171.904. QUALIFICATION. (a) A taxable entity |
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qualifies for a credit under this subchapter if the taxable entity: |
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(1) maintains monitoring of the emission of air |
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contaminants from a major source that is located in the |
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nonattainment area; |
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(2) maintains records that must include the date, |
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time, and findings of the measuring and monitoring of the |
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emissions; and |
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(3) provides the commission a copy of the records on |
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the measuring and monitoring of the emissions periodically as |
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required by the commission. |
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(b) The taxable entity shall maintain records of air quality |
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monitoring data on-site for review by the commission, including |
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data on: |
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(1) each hazardous air pollutant listed under Section |
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112 of the federal Clean Air Act (42 U.S.C. Section 7412) that is |
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applicable to the major source; |
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(2) each air contaminant that the owner or operator |
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has reason to believe may be emitted from the major source; and |
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(3) any other air contaminant that the executive |
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director requests that the owner or operator monitor. |
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Sec. 171.905. AMOUNT; LIMITATIONS. (a) The amount of a |
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credit under this subchapter is equal to: |
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(1) on the first two reports for which the taxable |
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entity may claim the credit, 35 percent of the total cost of |
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acquiring and installing the air quality monitoring devices; and |
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(2) on the next three reports on which the taxable |
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entity may claim the credit, 10 percent of the total cost of |
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acquiring and installing the air quality monitoring devices. |
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(b) The taxable entity must claim the credit on consecutive |
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reports. |
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(c) The total credit claimed under this subchapter for a |
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report may not exceed the amount of franchise tax due after any |
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other applicable credits. |
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(d) 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. 171.906. APPLICATION FOR CREDIT. A taxable entity |
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must apply for a credit under this subchapter on or with the tax |
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report for the period for which the credit is claimed. The taxable |
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entity shall file with the report a certification from the |
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commission confirming that the taxable entity provided the |
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commission a copy of the records on the measuring and monitoring of |
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the emissions as required by Section 171.904(a). |
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Sec. 171.907. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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Sec. 171.908. EVALUATION OF PILOT PROGRAM. The comptroller |
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shall evaluate the effectiveness of the pilot program established |
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under this subchapter and report the results of the evaluation to |
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the legislature not later than February 1, 2013. The report shall |
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include: |
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(1) the number of taxable entities claiming the credit |
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under this subchapter; |
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(2) the total amount of credits claimed under this |
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subchapter; |
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(3) the comptroller's recommendations regarding: |
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(A) the extension of the air quality monitoring |
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device tax credit program and the expansion of the program |
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statewide; and |
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(B) methods to enhance the effectiveness, |
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simplicity, or any other aspect of the program; and |
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(4) any other information the comptroller considers |
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meaningful and appropriate. |
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Sec. 171.909. TERMINATION OF PILOT PROGRAM; EXPIRATION OF |
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SUBCHAPTER. (a) The pilot program terminates and this subchapter |
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expires December 31, 2012. |
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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 to a report originally due on or |
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after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |