Honorable Dustin Burrows, Chair, House Committee on Ways & Means
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB3865 by Bailes (Relating to calculation of daily production for purposes of the oil and gas production tax credits for low-producing wells and leases.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend Sections 201 and 202 of the Tax Code regarding the oil and gas production tax credits for low-producing gas wells and oil leases.
The bill would provide that for determination of qualification for the tax credits, the greater of the monthly production volume reported to the Railroad Commission or the monthly production volume reported to the comptroller be used.
The bill would codify the comptroller's existing use of the reported production volume available to the comptroller under certain circumstances in the qualification process, therefore bill would have no fiscal impact on the state or units of local government.
The bill would take effect September 1, 2019.
Local Government Impact
No fiscal implication to units of local government is anticipated.