81R12938 BEF-D
 
  By: Turner of Tarrant H.B. No. 3955
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for energy-efficient
  manufacturing infrastructure.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter L-1 to read as follows:
  SUBCHAPTER L-1.  TAX CREDIT FOR ENERGY-EFFICIENT MANUFACTURING
  INFRASTRUCTURE
         Sec. 171.661.  DEFINITION. In this subchapter,
  "energy-efficient manufacturing infrastructure" means machinery or
  other capital infrastructure used in an energy-efficient
  manufacturing process to manufacture energy-efficient products.
         Sec. 171.662.  ELIGIBILITY.  (a)  A taxable entity is
  eligible for a credit against the tax imposed under this chapter for
  a period in the amount and under the conditions provided by this
  subchapter.
         (b)  A taxable entity qualifies for a credit under this
  subchapter for the cost of energy-efficient manufacturing
  infrastructure if:
               (1)  the infrastructure is acquired by the taxable
  entity for use in an energy-efficient manufacturing process to
  manufacture energy-efficient products; and
               (2)  the infrastructure is used in this state by the
  taxable entity.
         (c)  On the request of the comptroller, the taxable entity
  shall file with the comptroller proof of the energy-efficient
  nature of the manufacturing process and the products manufactured.
         Sec. 171.663.  AMOUNT.  The amount of the credit under this
  subchapter for a period is equal to the cost of energy-efficient
  manufacturing infrastructure acquired during the period.
         Sec. 171.664.  LIMITATION.  (a)  A taxable entity may not
  claim a credit for a period in an amount that exceeds the lesser of:
               (1)  the total amount of tax owed for the period; or
               (2)  the cost of the energy-efficient manufacturing
  infrastructure, not to exceed a total of $250,000.
         (b)  A taxable entity may claim a credit under this
  subchapter for energy-efficient manufacturing infrastructure
  acquired during a period only against the tax owed for the period.
         SECTION 2.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2010.