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 Energy Star Holiday
 
The Texas Legislature enacted a sales tax holiday for certain qualifying energy-efficient products purchased during Memorial Day Weekend.

Who Benefits:

The sales tax holiday benefits taxpayers who purchase qualifying energy-efficient products during the tax holiday period. The Comptroller's website provides a list of qualifying products.

Deadlines:

The program is available for purchases made during Memorial Day weekend. Retailers and contractors may set up layaway programs to take advantage of the tax free holiday.

There are no restrictions on who can take advantage of the sales tax holiday. A wholesaler may institute a layaway program for contractors so that they may take advantage of the sales tax holiday.

Layaway sales of eligible products qualify for the exemption when either the final payment on a layaway order is made and the merchandise is given to the customer during the exemption period, or the item is selected by the customer and the order is accepted into layaway by the retailer during the exemption period for immediate delivery upon full payment, even if delivery is made after the exemption period.

Rules for Contractors:


Contractors may purchase qualifying items tax-free during the sales tax holiday and the items may be held in inventory until ready for use. An exemption or resale certificate is not required.

No use tax is due if a qualifying item purchased tax free during the holiday (by a contractor) is subsequently incorporated into the realty of the /contractor’s customer under a lump sum contract for new construction or residential repair and remodeling – even if the installation occurs after the holiday period.

Contractors and nonresidential repair and remodeling service providers will be responsible for collecting sales tax from customers on sales of qualifying Energy Star items under a separated contract or under a lump sum contract for nonresidential repair and remodeling, unless the transaction (the sale of the unit) between the customer and service provider or contractor occurs during the holiday period.

Charges for installation of qualifying items purchased during the sales tax holiday may qualify for exemption depending on whether the items are permanently attached to or installed in real property and whether the realty is residential or nonresidential.

How to Participate:

Eligible taxpayers must make the purchase during the tax-free period. Retailers must retain documentation of the date of the sale, the detail regarding the item purchased, and other relevant information. An exemption or resale certificate is not required.


More information is available on the Comptroller's website at:

http://window.state.tx.us/taxinfo/sales/faq_energystar.html

 


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