Texas House Bill HB3830

Texas 2025 - 89th Regular

• Filed: 3/5/25

Caption

Relating to a franchise tax credit for certain watershed protection activities.

Impact

The implementation of HB 3830 could significantly impact state tax law by creating a new tax incentive for agriculture-related entities involved in watershed protection. By allowing eligible businesses to claim credits against their franchise tax, the legislation not only aims to minimize the financial burden of compliance with environmental regulations but also seeks to encourage better waste management practices that can benefit the overall health of water resources in Texas. The proposed changes are intended to facilitate environmentally sound operations while also addressing the pressing concerns surrounding the pollution of major watersheds.

Summary

House Bill 3830 introduces a new franchise tax credit aimed at promoting watershed protection activities in Texas. Specifically, the bill facilitates a tax credit for taxable entities that operate within major sole source impairment zones while engaging in the transportation of agricultural waste. This provision is designed to incentivize responsible waste management practices among agricultural operations, particularly those involved in concentrated animal feeding operations (CAFOs). The bill establishes clear eligibility criteria and outlines the mechanics of how the tax credit can be claimed, emphasizing the importance of reducing environmental impacts associated with agricultural waste disposal.

Contention

Amidst discussions regarding HB 3830, notable contention arises from the implications it may carry for watershed health in various regions. Proponents of the bill argue that the credits will motivate agricultural producers to adopt more sustainable practices, ultimately reducing the risk of contamination in water sources. Conversely, opponents may voice concerns regarding the potential for abuse of the tax credits, questioning whether financial incentives alone will lead to genuine compliance with environmental standards. These differing viewpoints highlight the ongoing debate over the balance between agricultural economic interests and environmental protection in legislative discussions.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 171. Franchise Tax
  • Section: New Section