Incentives/Policies for Renewables & Efficiency
Last DSIRE Review: 02/05/2013
||Sales Tax Incentive
|Eligible Efficiency Technologies:
||Clothes Washers, Dishwasher, Refrigerators, Dehumidifiers, Ceiling Fan, Lighting, Central Air conditioners, Programmable Thermostats
|| General Public/Consumer
|Amount:||100% of sales and use tax (6.25% - 8.25% depending on local jurisdiction)|
|Maximum Incentive:||Air conditioners: price of less than $6,000; |
Refrigerators: price of less than $2,000;
No limit on total purchases.
|Equipment Requirements:||Must meet federal Energy Star efficiency requirements|
Texas Tax Code § 151.333|
Purchases of certain energy-efficient products during Memorial Day weekend are exempt from the state sales and use tax.* This amounts to a three-day tax holiday beginning on the Saturday preceding the last Monday in May (Memorial Day) and ending on that same Monday. The state sales and use tax rate is presently 6.25%; some local jurisdictions add an additional levy of up to 2%. The state exemption applies to both the state and local portion (if one exists) of the tax. Although the eligibility of some products is limited according to their sale price, there are no limitations on the total value or number of products exempt from sales tax. This incentive is available only for the following types of products that meet federal Energy Star
- Air conditioners with a sales price of less than $6,000
- Refrigerators with a sales price of less than $2,000
- Clothes washers
- Ceiling fans
- Incandescent or fluorescent light bulbs
- Programmable thermostats**
Purchasers are not required to supply an exemption certificate or any other form of documentation in order to claim the exemption. Further details on how the exemption is applied to internet and catalog sales; delivery charges; layaway plans; and installation charges are available from the program website. Interested individuals may also contact the office of the Texas Comptroller of Public Accounts with questions.
*HB3693 of 2007 originally created the sales and use tax holiday.
**The Energy Star specification for programmable thermostats was suspended December 31, 2009. Otherwise eligible products manufactured prior to this expiration remain eligible for the sales tax exemption.
Comptroller of Public Accounts
Tax Policy Division
Post Office Box 13528, Capitol Station
Austin , TX 78711-3528
Phone: (800) 252-5555
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.
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