sales tax break on efficient home heating and air

The text as introduced · 564 words

89R2669 CJD-D

By: West
S.B. No. 214

A BILL TO BE ENTITLED

AN ACT

relating to a temporary exemption from sales and use taxes for

certain residential heating, ventilation, and air conditioning

systems and installation services.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended

by adding Section 151.360 to read as follows:

Sec. 151.360. TEMPORARY EXEMPTION FOR CERTAIN RESIDENTIAL

HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS. (a) Subject

to the conditions of this section, the sale and installation of a

residential heating, ventilation, and air conditioning system is

exempted from the taxes imposed by this chapter if:

(1) except as provided by Subsection (b), the sale

takes place on or after March 1, 2026, and before September 1, 2027;

and

(2) the system:

(A) is used for the purchaser's primary

single-family residence;

(B) has a minimum Seasonal Energy Efficiency

Rating (SEER) of 14 SEER;

(C) is designated as an Energy Star qualified

product under the Energy Star program jointly operated by the

United States Environmental Protection Agency and the United States

Department of Energy; and

(D) is installed by a person licensed under

Subchapter F or G, Chapter 1302, Occupations Code, to engage in air

conditioning and refrigeration contracting.

(b) If the cost of installation is not included in the sales

price of a residential heating, ventilation, and air conditioning

system described by Subsection (a), the sales price of the

installation is exempted from the taxes imposed by this chapter if

the installation occurs not later than the 90th day after the date

of the sale of the system.

(c) This section does not apply to the sale and installation

of a residential heating, ventilation, and air conditioning system

that is installed or intended to be installed in a:

(1) rental or commercial property; or

(2) structure or improvement that is constructed less

than one year before the date of the sale.

(d) Not later than November 1, 2025, the comptroller shall

prescribe and make available on the comptroller's Internet website

an exemption certificate on which a person can certify and attest

that a sale:

(1) satisfies the conditions of Subsection (a) or (b),

as applicable; and

(2) is a sale to which this section applies.

(e) For a sale to be eligible for the exemption provided by

this section, the purchaser must provide to the seller at the time

of the sale a completed and signed exemption certificate described

by Subsection (d). A sale is not exempt under this section, and the

seller shall collect any tax imposed under this chapter, if the

purchaser does not provide an exemption certificate in the manner

described by this subsection.

(f) If a purchaser who gives an exemption certificate under

Subsection (e) makes any use of the heating, ventilation, and air

conditioning system or installation services that does not qualify

for the exemption provided by this section, the purchaser is liable

for payment of the sales tax on the original purchase price of the

system or installation.

(g) This section expires December 31, 2027.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.