Solar and Wind Energy Business Franchise Tax Exemption (Texas)

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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
Date added to DSIRE 2000-01-01
Last DSIRE Review 2014-08-06



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.


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"