Solar and Wind energy Device Franchise Tax Deduction

Incentive Type:Corporate Tax Deduction
Energy, Technology
Eligible Sector:
Financial Incentive
Time Period:
FY 2015
Governing Body:Comptroller of Public Accounts
What’s it worth?:10% of amortized cost

Commercial and industrial corporations may deduct the cost of a solar energy system by deducting the cost from the company’s taxable capital or deducting 10% of the cost of the system from the company’s income. Both of these deduction options are  an equivalent to a Texas corporate tax. Eligible technologies include:

  • Solar water heat
  • Solar space heat
  • Solar thermal electric
  • Solar thermal process heat
  • Photovoltaics
  • Wind energy

It is highly recommended that potential participants verify devices as eligible before investing in the purchase and installation of renewable energy devices.

There is no celling for the amount of exemption an organization can qualify for.To file for this deduction participants must fully complete IRS Tax forms 05-102 or 05-167, depending upon organization type, the Public Information Report (PIR).