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A BILL TO BE ENTITLED
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AN ACT
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relating to the imposition of a tax on certain entities that receive |
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certain federal tax credits related to investing in and developing |
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renewable energy projects in an amount equal to the federal tax |
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credits received. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 2, Tax Code, is amended by |
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adding Chapter 165 to read as follows: |
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CHAPTER 165. TAX ON CERTAIN RENEWABLE ENERGY PROJECT DEVELOPERS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 165.001. DEFINITIONS. In this chapter: |
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(1) "Affiliated power generation company," "electric |
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utility," and "exempt wholesale generator" have the meanings |
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assigned by Section 31.002, Utilities Code. |
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(2) "Electric cooperative" has the meaning assigned by |
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Section 11.003, Utilities Code. |
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(3) "Electric generator" includes: |
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(A) an affiliated power generation company; |
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(B) an electric utility or electric cooperative |
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that owns or operates for compensation in this state equipment or |
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facilities to generate electricity in this state; |
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(C) an exempt wholesale generator; and |
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(D) a power generation company. |
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(4) "Federal tax credit" means: |
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(A) the renewable energy production tax credit or |
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clean energy production tax credit under Section 45, Internal |
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Revenue Code of 1986; |
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(B) the investment tax credit or production tax |
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credit under Pub. L. No. 117-169, commonly cited as the Inflation |
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Reduction Act of 2022; |
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(C) the investment tax credit under 26 U.S.C. |
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Section 48; or |
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(D) any other federal tax credit for investment |
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in or production of renewable energy. |
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(5) "Power generation company" has the meaning |
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assigned by Section 31.002, Utilities Code, except that the term |
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does not include a distributed natural gas generation facility, as |
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that term is defined by Section 31.002, Utilities Code. |
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(6) "Renewable energy project developer" means an |
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electric generator or other entity that invests in the production |
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or storage of renewable energy. |
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SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX |
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Sec. 165.021. TAX IMPOSED. A tax is imposed on each |
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renewable energy project developer in this state that receives a |
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federal tax credit. |
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Sec. 165.022. AMOUNT OF TAX. The amount of the tax is equal |
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to the amount of the federal tax credit received by the renewable |
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energy project developer. |
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Sec. 165.023. REPORT AND PAYMENT OF TAX. (a) Not later |
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than April 15 of each year, a renewable energy project developer on |
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whom the tax is imposed shall file with the comptroller a report: |
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(1) stating the amount of the federal tax credit the |
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developer received in the preceding calendar year; and |
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(2) that includes any other information required by |
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the comptroller. |
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(b) The developer shall send the amount of tax due for the |
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preceding calendar year to the comptroller with the report. |
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Sec. 165.024. RECORDS. A renewable energy project |
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developer on whom the tax is imposed shall keep a complete record |
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of: |
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(1) the amount of all federal tax credits the |
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developer receives along with the qualified energy resource; and |
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(2) any other information required by the comptroller. |
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SUBCHAPTER C. DISPOSITION OF PROCEEDS |
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Sec. 165.051. DISPOSITION OF PROCEEDS. The comptroller |
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shall deposit the proceeds from the collection of the tax as |
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follows: |
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(1) 25 percent to the credit of the foundation school |
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fund; and |
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(2) the remainder to the credit of the general revenue |
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fund. |
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SECTION 2. This Act takes effect September 1, 2025. |