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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 certain investments made in |
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relation to certain renewable energy technology systems. |
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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 V to read as follows: |
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SUBCHAPTER V. TAX CREDIT FOR INVESTMENTS IN CERTAIN RENEWABLE |
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ENERGY TECHNOLOGY SYSTEMS |
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Sec. 171.901. DEFINITIONS. In this subchapter: |
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(1) "Actual cost" means the costs related to a |
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renewable energy technology system, including the cost of |
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accessories and installation, after deducting any incentives |
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relating to the system or costs for which any other type of tax |
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credit is claimed. |
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(2) "Renewable energy technology system" means an |
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identifiable facility, apparatus, or equipment that converts a |
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renewable source of energy into: |
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(A) a usable source of thermal or mechanical |
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energy; |
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(B) electricity; or |
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(C) fuel. |
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(3) "Renewable source of energy" means energy |
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generated from: |
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(A) the wind; or |
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(B) the sun, including solar thermal energy and |
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photovoltaic energy. |
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Sec. 171.902. 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. 171.903. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter only if the taxable entity |
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installs and places into service in this state a new renewable |
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energy technology system. |
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Sec. 171.904. AMOUNT; LIMITATIONS. (a) The amount of a |
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credit under this subchapter for a renewable energy technology |
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system that uses wind-powered energy is equal to the lesser of 20 |
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percent of the actual cost of the system or $500,000. |
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(b) The amount of a credit under this subchapter for a |
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renewable energy technology system that uses solar thermal energy |
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is equal to the lesser of 35 percent of the actual cost of the system |
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or $250,000. |
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(c) The amount of a credit under this subchapter for a |
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renewable energy technology system that uses photovoltaic energy is |
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equal to the lesser of 35 percent of the actual cost of the system or |
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$500,000. |
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(d) The taxable entity must claim a credit under this |
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subchapter on the report based on the accounting period during |
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which the taxable entity first places the new renewable energy |
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technology system into service in this state. |
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(e) 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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Sec. 171.905. CARRYFORWARD. (a) If a taxable entity is |
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eligible for a credit that exceeds the limitation under Section |
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171.904(e), the taxable entity may carry the unused credit forward |
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for consecutive reports. |
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(b) A carryforward is considered the remaining portion of a |
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credit that cannot be claimed in the current year because of the |
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limitation under Section 171.904(e). A carryforward is added to |
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the next year's credit in determining whether the limitation is met |
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for that year. A credit carryforward from a previous report is |
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considered to be used before the current year credit. |
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Sec. 171.906. ASSIGNMENT PROHIBITED. A taxable entity may |
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not convey, assign, or transfer the credit allowed under this |
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subchapter to another entity unless all of the assets of the taxable |
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entity are conveyed, assigned, or transferred. |
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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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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. |