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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 taxable entities that |
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construct a nuclear 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 N to read as follows: |
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SUBCHAPTER N. TAX CREDIT FOR CONSTRUCTION OF NUCLEAR PROJECT |
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Sec. 171.701. DEFINITION. In this subchapter, "nuclear |
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project" includes a: |
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(1) nuclear power generation site or facility; |
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(2) nuclear reactor; |
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(3) nuclear reactor manufacturing facility; |
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(4) facility for reprocessing or recycling nuclear |
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fuel; and |
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(5) facility for enriching uranium. |
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Sec. 171.702. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions provided |
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by this subchapter against the tax imposed under this chapter. |
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Sec. 171.703. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity owns a |
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nuclear project that is first placed in service during the period on |
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which the report is based. |
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Sec. 171.704. AMOUNT OF CREDIT; LIMITATION. (a) Subject to |
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Subsection (b), the amount of the credit a taxable entity may claim |
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on a report is equal to the lesser of: |
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(1) 10 percent of the taxable entity's costs to |
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construct and place in service the nuclear project; or |
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(2) $250 million. |
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(b) The total credit claimed on a report, including the |
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amount of any carryforward under Section 171.705, may not exceed |
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the amount of franchise tax due for the report after applying all |
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other applicable credits. |
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Sec. 171.705. CARRYFORWARD. (a) If a taxable entity is |
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eligible for a credit that exceeds the limitation under Section |
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171.704(b), the entity may carry the unused credit forward for not |
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more than 25 consecutive reports. |
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(b) A carryforward is considered the remaining portion of a |
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credit that cannot be claimed on a report because of the limitation |
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under Section 171.704(b). |
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(c) Credits, including a carryforward, are considered to be |
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used in the following order: |
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(1) a carryforward under this section; and |
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(2) a credit for the period on which the report is |
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based. |
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Sec. 171.706. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the report |
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for the period for which the credit is claimed. |
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(b) A taxable entity must apply for the credit in the manner |
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prescribed by the comptroller and include with the application any |
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information requested by the comptroller to determine whether the |
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entity is eligible for the credit under this subchapter. |
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Sec. 171.707. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable |
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entity may not convey, assign, or transfer the credit allowed under |
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this subchapter to another taxable entity unless substantially all |
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of the assets of the taxable entity are conveyed, assigned, or |
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transferred in the same transaction. |
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Sec. 171.708. RULES. The comptroller shall adopt rules |
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necessary to implement and administer this subchapter. |
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SECTION 2. Subchapter N, Chapter 171, Tax Code, as added by |
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this Act, applies only to a report originally due on or after |
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January 1, 2026. |
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SECTION 3. This Act takes effect January 1, 2026. |