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A BILL TO BE ENTITLED
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AN ACT
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relating to the development and expansion of clean hydrogen |
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production, distribution, and utilization in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 490J, Government Code, is added to read |
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as follows: |
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Sec. 490J.001. CLEAN HYDROGEN DEVELOPMENT FUND. (a) The |
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Clean Hydrogen Development Fund is established as a special fund in |
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the state treasury to finance clean hydrogen projects. |
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(b) The fund shall be administered by the comptroller in |
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consultation with the Texas Commission on Environmental Quality and |
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the Texas Railroad Commission. |
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(c) Money in the fund may be used to provide: |
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(1) low interest loans for hydrogen infrastructure and |
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production facilities; |
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(2) state-backed bonds for the financing of hydrogen |
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projects; or |
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(3) state grants for hydrogen electrolyzer |
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manufacturing in this state. |
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(d) The fund may accept federal grants, private donations, |
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and legislative appropriations. |
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SECTION 2. Subchapter L, Chapter 171, Tax Code, is amended |
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by adding Section 171.603 to read as follows: |
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Sec. 171.603. CLEAN HYDROGEN TAX INCENTIVES. (a) A person |
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or business entity that constructs or operates a clean hydrogen |
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production facility in this state may be eligible for a state tax |
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credit. |
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(b) The credit shall be equivalent to 20 percent of |
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qualified capital expenditures related to hydrogen production, |
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transport, or storage. |
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(c) A manufacturer of hydrogen electrolyzers relocating to |
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Texas from out of state shall receive: |
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(1) a 10-year franchise tax exemption; and |
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(2) a sales tax exemption on equipment purchases used |
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in manufacturing. |
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(d) The comptroller shall adopt rules necessary for |
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implementation, including reporting requirements to track economic |
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impact. |
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SECTION 3. Chapter 502, Transportation Code, is amended by |
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adding Section 502.257 to read as follows: |
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Sec. 502.257. TEMPORARY HIGHWAY TAX RELIEF FOR HYDROGEN |
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VEHICLES. (a) Hydrogen-powered vehicles, including hydrogen |
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internal combustion engine and fuel cell vehicles, shall be exempt |
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from state highway use taxes for ten years or until cost parity with |
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conventional energy sources is reached, as determined by the Texas |
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Commission on Environmental Quality. |
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(b) The exemption applies to commercial trucking, rail, |
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shipping, and aviation operators. |
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SECTION 4. Chapter 136, Education Code, is amended by |
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adding Section 136.008 to read as follows: |
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Sec. 136.008. WORKFORCE DEVELOPMENT INITIATIVES. (a) The |
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Texas Workforce Development Commission shall establish |
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partnerships with universities, technical schools, or community |
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colleges to provide specialized training for hydrogen sector jobs. |
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(b) The Workforce Commission may provide grants to |
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educational institutions to develop curriculum and certification |
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programs for hydrogen technology. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |