87R12418 CJC-D
 
  By: Meza H.B. No. 4405
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to imposing a tax on certain electric generators and gas
  producers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
  adding Chapter 165 to read as follows:
  CHAPTER 165. TAX ON ELECTRIC GENERATORS AND GAS PRODUCERS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 165.001.  DEFINITIONS. In this chapter:
               (1)  "Affiliated power generation company," "electric
  utility," and "exempt wholesale generator" have the meanings
  assigned by Section 31.002, Utilities Code.
               (2)  "Electric cooperative" has the meaning assigned by
  Section 11.003, Utilities Code.
               (3)  "Electric generator" includes:
                     (A)  an affiliated power generation company;
                     (B)  an electric utility or electric cooperative
  that owns or operates for compensation in this state equipment or
  facilities to generate electricity in this state;
                     (C)  an exempt wholesale generator; and
                     (D)  a power generation company.
               (4)  "Gas" has the meaning assigned by Section 201.001.
               (5)  "Gas producer" means a producer as defined by
  Section 201.001.
               (6)  "Power generation company" has the meaning
  assigned by Section 31.002, Utilities Code, except that the term
  does not include a distributed natural gas generation facility, as
  that term is defined by Section 31.002, Utilities Code.
         Sec. 165.002.  COMPTROLLER POWERS AND DUTIES. The
  comptroller shall adopt rules and forms necessary to implement this
  chapter.
  SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
         Sec. 165.021.  TAX IMPOSED ON ELECTRIC GENERATOR; AMOUNT OF
  TAX. (a) A tax is imposed on each electric generator in this state.
         (b)  The amount of the tax imposed by this chapter on an
  electric generator each year is equal to the amount of the net
  profit received by the electric generator during that year that is
  directly attributable to electricity sold by the electric generator
  at wholesale for the price of $9,000 per megawatt hour beyond the
  first four hours of sale at that price.
         Sec. 165.022.  TAX IMPOSED ON GAS PRODUCER; AMOUNT OF TAX.
  (a) A tax is imposed on each gas producer in this state.
         (b)  The amount of the tax imposed by this chapter on a gas
  producer each year is equal to the amount of the net profit received
  by the gas producer during that year that is directly attributable
  to gas sold by the gas producer at the wellhead at a price in excess
  of $200 per thousand cubic feet.
         Sec. 165.023.  PAYMENT OF TAX. Not later than February 25 of
  each year, each electric generator and gas producer on whom a tax is
  imposed by this chapter shall send to the comptroller the amount of
  tax due under this chapter for the preceding year.
         Sec. 165.024.  REPORTS. Not later than February 25 of each
  year:
               (1)  each electric generator on whom a tax is imposed by
  this chapter shall send to the comptroller a report stating:
                     (A)  the amount of the net profit received by the
  electric generator during the preceding year that was directly
  attributable to electricity sold by the electric generator at
  wholesale at a price in excess of $9,000 per megawatt hour beyond
  the first four hours of sale at that price during that year; and
                     (B)  any other information required by the
  comptroller; and
               (2)  each gas producer on whom a tax is imposed by this
  chapter shall send to the comptroller a report stating:
                     (A)  the amount of the net profit received by the
  gas producer during the preceding year that is directly
  attributable to gas sold by the gas producer at the wellhead at a
  price in excess of $200 per thousand cubic feet during the preceding
  year; and
                     (B)  any other information required by the
  comptroller.
         Sec. 165.025.  RECORDS. An electric generator or gas
  producer on whom a tax is imposed under this chapter shall keep a
  complete record of all information required to be reported to the
  comptroller under Section 165.024.
  SUBCHAPTER C. TAX CREDIT FOR WEATHERIZATION ACTIVITIES
         Sec. 165.041.  DEFINITION. In this subchapter, "qualifying
  weatherization activity" means an activity designed to allow
  equipment used to generate electricity or produce gas to operate
  when the outside temperature is at -20 degrees Fahrenheit or 120
  degrees Fahrenheit or is between those temperatures.
         Sec. 165.042.  ELIGIBILITY AND AMOUNT OF CREDIT. (a) An
  electric generator or gas producer on whom a tax is imposed under
  this chapter may claim a credit against the tax in the amount and
  subject to the conditions provided by this section.
         (b)  The amount of the credit that may claimed on a report is
  equal to the total amount spent by the electric generator or gas
  producer on qualifying weatherization activities during the period
  on which the report is based.
         (c)  The amount of the credit that may be claimed on a report
  may not exceed the electric generator's or gas producer's tax
  liability under this chapter for the period on which the report is
  based. An electric generator or gas producer may not carry forward
  any amount of a credit calculated as provided under Subsection (b)
  that exceeds the limitation prescribed by this subsection.
  SUBCHAPTER D. ALLOCATION AND USE
         Sec. 165.061.  ALLOCATION OF TAX REVENUE. (a) The
  comptroller shall deposit the revenue from the tax imposed under
  this chapter as follows:
               (1)  25 percent to the credit of the foundation school
  fund; and
               (2)  the remainder to the credit of the general revenue
  fund.
         (b)  Money deposited to the credit of the general revenue
  fund under Subsection (a) may be appropriated only to the state
  energy conservation office of the comptroller's office as
  established by Chapter 447, Government Code, for the purpose of
  funding energy conservation programs administered by the office.
         SECTION 2.  This Act takes effect September 1, 2021.