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