Solar and Wind Energy Business Franchise Tax Exemption (Texas)

From Open Energy Information

Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place Texas


Name Solar and Wind Energy Business Franchise Tax Exemption
Incentive Type Industry Recruitment/Support
Applicable Sector Commercial, Industrial
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount All




Start Date 1982










Program Administrator Comptroller of Public Accounts
Website http://www.seco.cpa.state.tx.us/re/incentives-taxcode-statutes.php


References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Companies in Texas engaged solely in the business of manufacturing, selling, or installing solar or wind energy devices are exempt from the franchise tax. The franchise tax is Texas’s equivalent to a corporate tax. There is no ceiling on this exemption, so it can be a substantial incentive for solar and wind businesses.

For the purposes of this exemption, a solar energy device means "a system or series of mechanisms designed primarily to provide heating or cooling or to produce electrical or mechanical power by collecting and transferring solar-generated energy. The term includes a mechanical or chemical device that has the ability to store solar-generated energy for use in heating or cooling or in the production of power." Under this definition wind energy is also listed as an eligible technology.

Texas also offers a franchise tax deduction for solar energy devices which also includes wind energy as an eligible technology.

<metadesc> Solar and Wind Energy Business Franchise Tax Exemption: energy incentive program. </metadesc>

Incentive Contact

Contact Name Comptroller of Public Accounts
Department Comptroller of Public Accounts
Address Post Office Box 13528, Capitol Station
Place Austin, Texas
Zip/Postal Code 78711-3528
Phone (800) 252-1381


Website http://www.window.state.tx.us/taxinfo/franchise



Authorities (Please contact the if there are any file problems.)

Authority 1: Texas Tax Code § 171.056
Date Effective 1982
Date Enacted 1981


















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content