Texas Senate Bill SB1993

Texas 2021 - 87th Regular

Caption

Relating to imposing a tax on the value of tax preferences received by wind and solar electric generators.

Impact

If enacted, SB1993 will amend the Texas Tax Code by adding a new chapter that imposes a tax equal to 90 percent of the value of renewable energy tax preferences awarded to electric generators in the previous calendar year. The new legislation will require these electric generators to report the total value of such preferences to the comptroller by April 15 each year along with the corresponding tax payment. Furthermore, it mandates that generators keep detailed records of their received preferences, ensuring transparency in the process.

Summary

SB1993 is a legislative proposal aimed at imposing a tax on the value of tax preferences received by electric generators that utilize wind and solar energy. This bill introduces the concept of a tax on renewable energy tax preferences, which includes various forms of tax incentives that current law provides to encourage the generation of renewable energy. The intention behind the bill is to create a fiscal mechanism that aligns financial responsibility with the benefits received from state tax incentives.

Conclusion

Overall, SB1993 reflects an important shift in the state's approach to taxation for renewable energy sectors, focusing on ensuring equity in the financial responsibilities of electric generators. The outcome of this bill could have significant implications on the future of renewable energy development in Texas and the overall landscape of energy policy within the state.

Contention

The bill may raise several points of contention among stakeholders. Supporters argue that the tax could provide new revenue streams for the state and ensure that wind and solar generators are contributing their fair share to the public coffers. However, opponents of the bill may express concerns that taxing renewable energy preferences could deter investment in sustainable energy projects and undermine the state's efforts to transition to cleaner energy sources. This could further complicate the relationship between state and renewable energy producers, stirring debate over the effectiveness of such financial incentives.