82R7919 JE-D
 
  By: Farrar H.B. No. 1849
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax deduction for the cost of certain
  sustainable commercial buildings.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 171, Tax Code, is amended
  by adding Section 171.1075 to read as follows:
         Sec. 171.1075.  DEDUCTION OF COST OF SUSTAINABLE BUILDING
  FROM MARGIN APPORTIONED TO THIS STATE. (a) In this section,
  "energy office" means the State Energy Conservation Office.
         (b)  A taxable entity may deduct from its apportioned margin
  10 percent of the amortized cost of a commercial building if:
               (1)  the building is a sustainable building certified
  by the energy office under Subsection (e);
               (2)  the building is constructed by the taxable entity;
               (3)  the building is located in this state; and
               (4)  the cost of the building is amortized in
  accordance with Subsection (c).
         (c)  The amortization of the cost of a sustainable building
  must:
               (1)  be for a period of at least 60 months;
               (2)  provide for equal monthly amounts or conform to
  federal depreciation schedules;
               (3)  begin on the month in which the building is placed
  in service; and
               (4)  cover only a period in which the building is in
  use.
         (d)  A taxable entity that makes a deduction under this
  section shall file with the comptroller an amortization schedule
  showing the period in which a deduction is to be made. On the
  request of the comptroller, the taxable entity shall file with the
  comptroller proof of:
               (1)  certification by the energy office under
  Subsection (e); and
               (2)  the cost of the building.
         (e)  The energy office shall certify a sustainable building
  that meets the standards adopted by the energy office under
  Subsection (f).
         (f)  The energy office shall:
               (1)  adopt and update as necessary energy efficiency
  and conservation standards for the construction of a sustainable
  building that initially match those of a silver certification for a
  commercial building under the Leadership in Energy and
  Environmental Design (LEED) rating system as it exists on January
  1, 2011; and
               (2)  adopt rules to implement this section.
         SECTION 2.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2012.