Enrolled Bill Summary

House Bill 2994	House Author:  Bonnen et al.
Effective:  See below	Senate Sponsor:  Hegar

            House Bill 2994 amends provisions of the Tax Code relating to certain agreements made with electric power generation facilities.  The bill amends the Property Redevelopment and Tax Abatement Act to authorize a taxing unit to defer the effective date of a tax abatement agreement with a nuclear facility located in a county reinvestment zone for up to seven years after the date the agreement is made and to require the term of a deferred agreement to end no later than 10 years after the effective date of the agreement.

            House Bill 2994 amends the Economic Development Act to authorize a school district to offer a limitation on property appraisal valuation for purposes of job creation to the owner of a nuclear facility and an integrated gasification facility.  "Qualifying time period" is redefined to provide that the time period of a property valuation limitation agreement with the owner of a nuclear power generation facility may be for up to seven years after the third anniversary of the date the school district approves the property owner's application.  House Bill 2994 redefines "qualified investment" to include certain tangible property used in connection with a nuclear facility or an integrated gasification facility regardless of whether the property is affixed to or incorporated into real property.  The bill adds property used in connection with electric power generation using integrated gasification combined cycle technology and nuclear electric power generation to the property that is eligible for a limitation on appraised value and includes a transition provision that is in effect until this provision takes effect on January 1, 2008.  The comptroller is required to submit a report assessing the progress of each agreement made under the terms set out in this bill under the Economic Development Act to the legislature, including information relating to job creation and impact on local tax revenues. 

            The provision of House Bill 2994 expanding the property that is eligible for limitation on appraised value is effective January 1, 2008; all other provisions take effect June 15, 2007.