80R3944 JD-D

By: Chisum H.B. No. 2969

A BILL TO BE ENTITLED

AN ACT

relating to the exemption from ad valorem taxation of a portion of the appraised value of real and tangible personal property used for the production, storage, distribution, or wholesale or retail sale of carbon-free hydrogen.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by adding Section 11.34 to read as follows:

Sec. 11.34. CARBON-FREE HYDROGEN PROPERTY. (a) A person is entitled to an exemption from taxation of 25 percent of the appraised value of real and tangible personal property that the person owns and that is used for the production, storage, distribution, or wholesale or retail sale of carbon-free hydrogen.

(b) To be eligible for an exemption under Subsection (a), the carbon-free hydrogen must qualify under Section 1-p, Article VIII, Texas Constitution.

(c) For purposes of Subsection (a), pipelines and vehicles are included in the meaning of property used for the distribution of carbon-free hydrogen.

(d) This section does not apply to real or tangible personal property that is or was subject to a tax abatement agreement executed before January 1, 2008.

(e) The comptroller shall develop guidelines to assist local officials in the administration of this section.

SECTION 2. This Act applies only to ad valorem taxes imposed for a tax year beginning on or after the effective date of this Act.

SECTION 3. This Act takes effect January 1, 2008, but only if the constitutional amendment proposed by the 80th Legislature, Regular Session, 2007, to exempt from ad valorem taxation 25 percent of the assessed value of real and tangible personal property used for the production, storage, distribution, or wholesale or retail sale of carbon-free hydrogen is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.