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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain taxing units to enter into an |
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agreement under the Property Redevelopment and Tax Abatement Act or |
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the Texas Economic Development Act with the owner of certain |
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electric power generation facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 312, Tax Code, is amended |
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by adding Section 312.403 to read as follows: |
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Sec. 312.403. TAX ABATEMENT AGREEMENT FOR NUCLEAR ELECTRIC |
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POWER GENERATION FACILITY IN COUNTY REINVESTMENT ZONE. (a) In this |
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section, "nuclear electric power generation" has the meaning |
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assigned by Section 313.024(e). |
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(b) An agreement made under this subchapter with the owner |
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of property that is a nuclear electric power generation facility |
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may include a provision that defers the effective date of the |
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agreement to a later date agreed to by the taxing unit and the owner |
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of the property, but not later than the seventh anniversary of the |
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date the agreement is made. |
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(c) If the effective date of an agreement is deferred under |
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Subsection (b), the agreement may have a term ending not later than |
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10 years after the effective date of the agreement, notwithstanding |
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Sections 312.204 and 312.208. |
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SECTION 2. Sections 313.021(1) and (4), Tax Code, are |
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amended to read as follows: |
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(1) "Qualified investment" means: |
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(A) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, and is |
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described as Section 1245 property by Section 1245(a), Internal |
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Revenue Code of 1986; |
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(B) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with the manufacturing, |
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processing, or fabrication in a cleanroom environment of a |
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semiconductor product, without regard to whether the property is |
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actually located in the cleanroom environment, including: |
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(i) integrated systems, fixtures, and |
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piping; |
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(ii) all property necessary or adapted to |
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reduce contamination or to control airflow, temperature, humidity, |
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chemical purity, or other environmental conditions or |
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manufacturing tolerances; and |
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(iii) production equipment and machinery, |
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moveable cleanroom partitions, and cleanroom lighting; [or] |
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(C) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with the operation of a |
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nuclear electric power generation facility, including: |
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(i) property, including pressure vessels, |
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pumps, turbines, generators, and condensers, used to produce |
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nuclear electric power; and |
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(ii) property and systems necessary to |
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control radioactive contamination; |
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(D) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with operating an |
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integrated gasification combined cycle electric generation |
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facility, including: |
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(i) property used to produce electric power |
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by means of a combined combustion turbine and steam turbine |
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application using synthetic gas or another product produced by the |
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gasification of coal or another carbon-based feedstock; or |
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(ii) property used in handling materials to |
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be used as feedstock for gasification or used in the gasification |
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process to produce synthetic gas or another carbon-based feedstock |
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for use in the production of electric power in the manner described |
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by Subparagraph (i); or |
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(E) a building or a permanent, nonremovable |
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component of a building that is built or constructed during the |
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applicable qualifying time period that begins on or after January |
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1, 2002, and that houses tangible personal property described by |
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Paragraph (A), [or] (B), (C), or (D). |
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(4) "Qualifying time period" means: |
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(A) the first two tax years that begin on or after |
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the date a person's application for a limitation on appraised value |
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under this subchapter is approved, except as provided by Paragraph |
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(B); or |
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(B) in connection with a nuclear electric power |
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generation facility, the first seven tax years that begin on or |
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after the third anniversary of the date the school district |
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approves the property owner's application for a limitation on |
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appraised value under this subchapter, unless a shorter time period |
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is agreed to by the governing body of the school district and the |
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property owner. |
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SECTION 3. Section 313.024, Tax Code, is amended by adding |
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Subsections (a-1) and (b-1) and amending Subsection (c) to read as |
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follows: |
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(a-1) Notwithstanding Subsection (a), this subchapter and |
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Subchapters C and D also apply to property used in the production of |
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nuclear electric power that is owned by an entity to which on and |
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after January 1, 2008, Chapter 171 of this code, as amended by |
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Chapter 1, Acts of the 79th Legislature, 3rd Called Session, 2006, |
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will apply. This subsection expires January 1, 2008. |
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(b-1) Notwithstanding Subsection (b), property used in |
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connection with electric power generation by the use of integrated |
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gasification combined cycle technology or nuclear electric power |
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generation is eligible for a limitation on appraised value under |
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this subchapter. This subsection expires January 1, 2008. |
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(c) For purposes of determining an applicant's eligibility |
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for a limitation under this subchapter: |
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(1) the land on which a building or component of a |
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building described by Section 313.021(1)(E) [313.021(1)(C)] is |
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located is not considered a qualified investment; |
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(2) property that is leased under a capitalized lease |
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may be considered a qualified investment; |
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(3) property that is leased under an operating lease |
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may not be considered a qualified investment; and |
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(4) property that is owned by a person other than the |
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applicant and that is pooled or proposed to be pooled with property |
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owned by the applicant may not be included in determining the amount |
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of the applicant's qualifying investment. |
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SECTION 4. Section 313.024(b), Tax Code, as effective |
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January 1, 2008, is amended to read as follows: |
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(b) To be eligible for a limitation on appraised value under |
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this subchapter, the entity must use the property in connection |
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with: |
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(1) manufacturing; |
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(2) research and development; |
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(3) a clean coal project, as defined by Section 5.001, |
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Water Code; |
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(4) a gasification project for a coal and biomass |
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mixture; [or] |
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(5) renewable energy electric generation; |
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(6) electric power generation using integrated |
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gasification combined cycle technology; or |
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(7) nuclear electric power generation. |
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SECTION 5. Section 313.024(e), Tax Code, is amended by |
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adding Subdivisions (3) and (4) to read as follows: |
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(3) "Integrated gasification combined cycle |
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technology" means technology used to produce electricity in a |
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combined combustion turbine and steam turbine application using |
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synthetic gas or another product produced from the gasification of |
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coal or another carbon-based feedstock, including related |
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activities such as materials-handling and gasification of coal or |
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another carbon-based feedstock. |
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(4) "Nuclear electric power generation" means |
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activities described in category 221113 of the 2002 North American |
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Industry Classification System. |
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SECTION 6. (a) The governmental acts and proceedings of the |
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governing body of a taxing unit relating to the consideration or |
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approval of an ad valorem tax abatement agreement under Chapter |
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312, Tax Code, that occurred before the effective date of this Act, |
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or of the governing body of a school district relating to the |
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consideration or approval of a limitation on appraised value for ad |
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valorem tax purposes under Chapter 313, Tax Code, that occurred |
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before the effective date of this Act, are validated as of the dates |
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they occurred. |
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(b) The governmental acts and proceedings of the taxing unit |
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or the governing body of the taxing unit that occurred after the |
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consideration or approval of an ad valorem tax abatement agreement |
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under Chapter 312, Tax Code, or of the school district or the |
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governing body of the school district that occurred after the |
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consideration or approval of a limitation on appraised value for ad |
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valorem tax purposes under Chapter 313, Tax Code, may not be held |
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invalid on the ground that the consideration or approval of the tax |
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abatement agreement or limitation on appraised value, in the |
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absence of this section, was invalid. |
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SECTION 7. (a) Except as otherwise provided by Subsection |
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(b) of this section, this Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2007, except as provided |
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by Subsection (b). |
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(b) Section 4 of this Act takes effect January 1, 2008. |