Corporate Deduction
Texas

Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind

Commercial, Industrial
10% of amortized cost

None

http://www.seco.cpa.state.tx.us/
re_incentives-taxcode-statutes.htm#171107

Texas Tax Code § 171.107
1981 (subsequently amended)
1982

Summary:
Texas allows a corporation or other entity subject the state franchise tax to deduct the cost of a solar energy device from the franchise tax. Entities are permitted to deduct 10% of the amortized cost of the system from their apportioned margin. This treatment is effective January 1, 2008 and replaces prior tax law that allowed a company to deduct (1) the total cost of the system from the company’s taxable capital; or, (2) 10% of the system’s cost from the company’s earned surplus (i.e., income). The franchise tax is Texas's equivalent to a corporate tax.  
 
For the purposes of this deduction, 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 included as an eligible technology.  
 
Texas also offers a franchise tax exemption for manufacturers, seller, or installers of solar energy systems which also includes wind energy as an eligible technology.



Contact:
Teresa Bostick
Comptroller of Public Accounts
Tax Policy Division - Franchise Tax
Post Office Box 13528, Capitol Station
Austin, TX 78711-3528
Phone: (800) 531-5441 Ext.5-9952
Phone 2: (512) 305-9952
E-Mail: teresa.bostick@cpa.state.tx.us
Web Site: http://www.window.state.tx.us/taxinfo/franchise/