Texas Tax Code

§ 171.107 — DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM MARGIN APPORTIONED TO THIS STATE

TX § 171.107Title 2. STATE TAXATION · Part F. FRANCHISE TAX; CREDITS · Ch. 171. FRANCHISE TAX · Art. C. DETERMINATION OF TAXABLE MARGIN; ALLOCATION AND APPORTIONMENT

Statute text

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(a)In this section, "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.

(b)A taxable entity may deduct from its apportioned margin 10 percent of the amortized cost of a solar energy device if:

(1)the device is acquired by the taxable entity for heating or cooling or for the production of power;

(2)the device is used in this state by the taxable entity; and

(3)the cost of the device is amortized in accordance with Subsection (c).

(c)The amortization of the cost of a solar energy device must:

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Legislative history

Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 5, eff. January 1, 2008.