Solar and Wind Energy Business Franchise Tax Exemption (Texas)

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

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.