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Texas

Texas

Incentives/Policies for Renewables & Efficiency

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Solar and Wind Energy Business Franchise Tax Exemption   

Last DSIRE Review: 10/11/2012
Program Overview:
State: Texas
Incentive Type: Industry Recruitment/Support
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind
Applicable Sectors: Commercial, Industrial
Amount:All
Maximum Incentive:None
Terms:N/A
Start Date:1982
Web Site: http://www.seco.cpa.state.tx.us/re_incentives-taxcode-statutes.ht...
Authority 1:
Date Enacted:
Date Effective:
Texas Tax Code ยง 171.056
1981
1982
Summary:

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

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:
  Comptroller of Public Accounts
Comptroller of Public Accounts
Post Office Box 13528, Capitol Station
Austin , TX 78711-3528
Phone: (800) 252-1381
Web Site: http://www.window.state.tx.us/taxinfo/franchise
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.