Texas House Bill HB1248

Texas 2019 - 86th Regular

Caption

Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.

Impact

The bill modifies Section 162.227 of the Texas Tax Code by introducing new subsections that govern the administration of tax credits or refunds associated with diesel fuel used in auxiliary power units or power take-off systems. One notable aspect is the requirement that the diesel fuel used must be measurable separately from the fuel used for propelling the vehicle, which could necessitate new measuring devices. The comptroller is tasked with determining the specifics of the credit or refund based on the fuel usage that meets these criteria.

Summary

House Bill 1248 aims to provide a tax credit or refund for diesel fuel taxes paid on diesel fuel used by auxiliary power units or power take-off equipment in Texas. This legislation seeks to encourage the use of more energy-efficient automotive technologies by allowing individuals and businesses utilizing auxiliary systems to reduce their overall tax burden. The bill outlines specific parameters for claiming these credits or refunds and establishes a timeline for when these provisions will be effective and how they will be administered by the state comptroller.

Contention

A point of potential contention arises from the structured reduction of the credit or refund over time, as specified in Subsection (d-2). The bill stipulates that benefits will be gradually decreased from 80 percent to 20 percent depending on when the fuel was purchased, with many stakeholders possibly expressing concerns about the long-term viability of these incentives. There might be differing views on whether the reductions adequately encourage the continued adoption of such technologies or if they could create financial challenges for motor vehicle operators relying on auxiliary systems.