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A BILL TO BE ENTITLED
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AN ACT
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relating to a temporary exemption from sales and use taxes for |
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certain residential heating, ventilation, and air conditioning |
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systems and installation services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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by adding Section 151.360 to read as follows: |
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Sec. 151.360. TEMPORARY EXEMPTION FOR CERTAIN RESIDENTIAL |
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HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS. (a) Subject |
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to the conditions of this section, the sale and installation of a |
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residential heating, ventilation, and air conditioning system is |
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exempted from the taxes imposed by this chapter if: |
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(1) except as provided by Subsection (b), the sale |
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takes place on or after March 1, 2026, and before September 1, 2027; |
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and |
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(2) the system: |
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(A) is used for the purchaser's primary |
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single-family residence; |
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(B) has a minimum Seasonal Energy Efficiency |
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Rating (SEER) of 14 SEER; |
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(C) is designated as an Energy Star qualified |
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product under the Energy Star program jointly operated by the |
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United States Environmental Protection Agency and the United States |
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Department of Energy; and |
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(D) is installed by a person licensed under |
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Subchapter F or G, Chapter 1302, Occupations Code, to engage in air |
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conditioning and refrigeration contracting. |
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(b) If the cost of installation is not included in the sales |
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price of a residential heating, ventilation, and air conditioning |
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system described by Subsection (a), the sales price of the |
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installation is exempted from the taxes imposed by this chapter if |
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the installation occurs not later than the 90th day after the date |
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of the sale of the system. |
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(c) This section does not apply to the sale and installation |
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of a residential heating, ventilation, and air conditioning system |
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that is installed or intended to be installed in a: |
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(1) rental or commercial property; or |
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(2) structure or improvement that is constructed less |
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than one year before the date of the sale. |
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(d) Not later than November 1, 2025, the comptroller shall |
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prescribe and make available on the comptroller's Internet website |
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an exemption certificate on which a person can certify and attest |
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that a sale: |
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(1) satisfies the conditions of Subsection (a) or (b), |
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as applicable; and |
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(2) is a sale to which this section applies. |
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(e) For a sale to be eligible for the exemption provided by |
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this section, the purchaser must provide to the seller at the time |
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of the sale a completed and signed exemption certificate described |
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by Subsection (d). A sale is not exempt under this section, and the |
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seller shall collect any tax imposed under this chapter, if the |
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purchaser does not provide an exemption certificate in the manner |
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described by this subsection. |
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(f) If a purchaser who gives an exemption certificate under |
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Subsection (e) makes any use of the heating, ventilation, and air |
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conditioning system or installation services that does not qualify |
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for the exemption provided by this section, the purchaser is liable |
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for payment of the sales tax on the original purchase price of the |
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system or installation. |
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(g) This section expires December 31, 2027. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |