Bill > SB214

This bill creates a temporary sales and use tax exemption for residential heating, ventilation, and air conditioning (HVAC) systems installed between March 1, 2026, and September 1, 2027. To qualify for the exemption, the HVAC system must be used in a primary single-family residence, have a minimum Seasonal Energy Efficiency Rating (SEER) of 14, be designated as an Energy Star qualified product, and be installed by a licensed HVAC contractor. The exemption applies to both the system's sale price and installation costs, provided the installation occurs within 90 days of the system's purchase. The exemption does not cover HVAC systems installed in rental properties, commercial properties, or structures less than one year old. Purchasers must obtain and provide an exemption certificate from the comptroller at the time of purchase, and if the system is used in a way that does not qualify for the exemption, the purchaser becomes liable for the sales tax. The tax exemption will expire on December 31, 2027, and the bill takes effect either immediately with a two-thirds vote in the legislature or on September 1, 2025, if immediate effect is not achieved.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB214