JWB S.B. 582 75(R)BILL ANALYSIS WAYS & MEANS S.B. 582 By: Ratliff (Holzheauser) 4-11-97 Committee Report (Unamended) BACKGROUND Section 202.054, Tax Code (Qualification of Oil From New or Expanded Enhanced Recovery Project for Special Tax Rate), provides an incentive program for Enhanced Oil Recovery. There is a 50 percent reduction in the severance tax rate for all new oil projects. In 1991 this was expanded to include a 50 percent tax credit for existing oil projects. However, the program is set to expire January 1, 1998. PURPOSE This bill extends the application period for a new enhanced oil recovery project or expansion of an existing enhanced oil recovery project from the current date of January 1, 1998, to January 1, 2008. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Section 202.054(b), Tax Code, to remove co-production projects from eligibility for the tax incentive. SECTION 2.Amends Section 202.054(c), Tax Code, to extend the filing deadline for applications for a new enhanced recovery project or an expansion of an existing enhanced recovery project from January 1, 1998, to January 1, 2008. Also removes co-production projects from eligibility for the incentive. SECTION 3.Effective date: September 1, 1997. SECTION 4.Emergency clause.