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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for purchasing electricity from |
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a clean coal project. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter V to read as follows: |
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SUBCHAPTER V. TAX CREDIT FOR PURCHASING POWER FROM CLEAN COAL |
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PROJECT IN THIS STATE |
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Sec. 171.901. DEFINITION. In this subchapter, "clean coal |
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project" has the meaning assigned by Section 5.001, Water Code. |
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Sec. 171.902. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions and |
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limitations provided by this subchapter against the tax imposed |
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under this chapter. |
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Sec. 171.903. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity: |
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(1) is an electric utility or retail electric |
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provider, as those terms are defined by Section 31.002, Utilities |
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Code; and |
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(2) purchases electricity generated by a clean coal |
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project in this state for resale to retail customers. |
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Sec. 171.904. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit is equal to 10 percent of the amount paid to the operator of a |
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clean coal project for the electricity described by Section |
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171.903(2). |
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(b) A taxable entity may claim a credit under this |
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subchapter for an expenditure made during an accounting period only |
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against the tax owed for the corresponding privilege period. |
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(c) A taxable entity may not carry over an expenditure made |
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during a privilege period to a subsequent privilege period. |
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Sec. 171.905. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the tax |
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report for the period for which the credit is claimed. |
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(b) The comptroller shall adopt a form for the application |
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for a credit. A taxable entity must use the form in applying for the |
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credit. |
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Sec. 171.906. ASSIGNMENT. (a) A taxable entity may |
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convey, assign, or transfer a credit under this subchapter to |
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another entity. |
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(b) A taxable entity that intends to convey, assign, or |
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transfer a credit under this subchapter shall deliver to the |
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comptroller notice of that intention at least 30 days before the |
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conveyance, assignment, or transfer occurs. |
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Sec. 171.907. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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Sec. 171.908. EXPIRATION OF SUBCHAPTER. This subchapter |
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expires on the date the FutureGen Industrial Alliance, Inc., loses |
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its qualification as being exempt from federal taxation under |
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Section 501(a), Internal Revenue Code of 1986, by being listed as an |
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exempt entity under Section 501(c)(3) of that code. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2008. |