Enrolled Bill Summary

House Bill 2446	House Author:  Crownover et al.
Effective:  6-14-13	Senate Sponsor:  Estes

            House Bill 2446 transfers provisions relating to franchise tax credits for clean energy projects from the Government Code to the Tax Code.  Previous law capped the amount of the franchise tax credit claimed for a report year at the amount of franchise tax attributable to the clean energy project for that report year.  The bill instead caps the total credit that a taxable entity may claim for a report at the amount of franchise tax due by the taxable entity for the report after any applicable tax credits.  The bill authorizes a taxable entity that is eligible to claim a credit that exceeds such cap to carry the unused credit forward for not more than 20 consecutive reports.  The bill authorizes the entity designated in the certificate of compliance for a clean energy project to assign the credit to one or more taxable entities. The bill removes language providing for the calculation of the amount of the franchise tax credit for each report year.  Previous law authorized the comptroller of public accounts to start issuing credits for clean energy projects on September 1, 2013.  The bill moves that date to the later of September 1, 2018, or the expiration of an agreement under the Texas Economic Development Act regarding the clean energy project for which the credit is issued.

House Bill 2446 amends the Health and Safety Code to redefine "advanced clean energy project" under the Texas Clean Air Act to include certain natural gas projects.

House Bill 2446 amends the Natural Resources Code to redefine "clean energy project," as applicable to provisions relating to the verification, monitoring, and certification of such a project, to add a project to construct a natural gas-fueled electric generating facility.  The bill prohibits an entity from submitting an application for certification of a project as a clean energy project before September 1, 2018, and authorizes only one clean energy project under a certificate of compliance to be a natural gas project.