Solar and Wind Energy Business Franchise Tax Exemption (Texas)
Last modified on December 17, 2014.
Financial Incentive Program
|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|
|Energy Category||Renewable Energy Incentive Programs|
|Program Administrator||Comptroller of Public Accounts|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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.
|Contact Name||Comptroller of Public Accounts|
|Department||Comptroller of Public Accounts|
|Address||Post Office Box 13528, Capitol Station|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Texas Tax Code § 171.056|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.