SRC-AAA S.B. 582 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 582
By: Ratliff
Finance
2-20-97
As Filed


DIGEST 

Currently, because of the Enhanced Oil Recovery incentive program
(program) there is a 50 percent severance tax 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. S.B. 582
continues the existing oil severance tax incentives for new and expanded
enhanced oil recovery projects until January 1, 2008. This extension will
not apply to co-production projects.                            

PURPOSE

As proposed, S.B. 582 extends the applications filing deadlines of the oil
production tax to new or expanded enhanced recovery projects to January 1,
1998.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 202.054(b), Tax Code, to provide that for a new
or expanded enhanced recovery project, other than a co-production project,
certain taxes are to be paid at a certain date.  Makes conforming and
nonsubstantive changes. 

SECTION 2. Amends Section 202.054(c), Tax Code, to require an application
under this section to be filed on or after September 1, 1989 and before
January 1, 2008, rather than 1998, for a new enhanced recovery project,
rather than a new enhanced recovery project, including any co-production
project.  Requires  an application under this section to be filed on or
after September 1, 1989 and before January 1, 2008, rather than 1998,  for
an expansion of an existing enhanced recovery project. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.