HBA-CBW S.B. 857 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 857 By: Madla Ways & Means 5/8/2001 Engrossed BACKGROUND AND PURPOSE In 1975, the Texas Legislature passed a sales tax exemption for solar energy devices. Coupled with a federal tax credit the incentives in the mid-1970s began to fuel the growth of the solar industry market. The federal tax credits that helped subsidize the state exemption ended by 1985. In 1987, the legislature began repealing tax exemptions, including exemptions for renewable energy devices used for residential and commercial usage, which caused the renewable energy industry to lose momentum. Senate Bill 857 exempts from limited sales, excise, and use taxes the sale or use of a renewable energy device. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 857 amends the Tax Code to exempt from limited sales, excise, and use taxes the sale or use of a renewable energy device, including the device's component parts and repair or replacement parts. These provisions expire August 31, 2003. EFFECTIVE DATE July 1, 2001, or if the Act does not receive the necessary vote, the Act takes effect October 1, 2001.