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A BILL TO BE ENTITLED
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AN ACT
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relating to the tax credit for enhanced efficiency equipment |
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installed on certain wells. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 202.061, Tax Code, is |
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amended to read as follows: |
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(b) The taxpayer responsible for the payment of severance |
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taxes on the production from a marginal well in this state on which |
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enhanced efficiency equipment is installed and used is entitled to |
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a credit in an amount equal to 10 percent of the cost of the |
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equipment, provided that: |
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(1) the cumulative total of all severance tax credits |
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authorized by this section may not exceed $1,000 for any marginal |
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well; |
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(2) the enhanced efficiency equipment installed in a |
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qualifying marginal well must have been purchased and installed not |
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earlier than September 1, 2005, or later than September 1, 2013 |
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[2009]; |
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(3) the taxpayer must file an application with the |
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comptroller for the credit and must demonstrate to the comptroller |
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that the enhanced efficiency equipment has been purchased and |
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installed in the marginal well within the period prescribed by |
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Subdivision (2); |
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(4) the number of applications the comptroller may |
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approve each state fiscal year may not exceed a number equal to one |
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percent of the producing marginal wells in this state on September 1 |
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of that state fiscal year, as determined by the comptroller; and |
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(5) the manufacturer of the enhanced efficiency |
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equipment must obtain an evaluation of the product under Subsection |
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(a). |
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SECTION 2. This Act takes effect September 1, 2007. |