SB214 - Relating to a temporary exemption from sales and use taxes for certain residential heating, ventilation, and air conditioning systems and installation services.

  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.