Texas House Bill HB3955

Texas 2009 - 81st Regular

Caption

Relating to a franchise tax credit for energy-efficient manufacturing infrastructure.

Impact

If enacted, HB3955 will amend Chapter 171 of the Tax Code by adding a new subchapter that establishes a formal framework for evaluating and applying for these tax credits. The bill caps the amount of tax credit that can be claimed at $250,000, helping to ensure that the benefits of the program are distributed among various manufacturing entities rather than a select few. This credit could significantly reduce the tax burden for manufacturers investing in energy-efficient technology.

Summary

House Bill 3955 introduces a franchise tax credit aimed at encouraging investments in energy-efficient manufacturing infrastructure within the state of Texas. The bill specifies criteria for what qualifies as 'energy-efficient manufacturing infrastructure' and outlines that only taxable entities utilizing such infrastructure in energy-efficient manufacturing processes will be eligible for the tax credit. This initiative seeks to promote sustainability and reduce the carbon footprint associated with manufacturing activities in Texas.

Contention

Supporters of the bill argue that incentivizing energy-efficient practices aligns with broader environmental goals and positions Texas as a leader in sustainable manufacturing practices. However, the bill may face scrutiny from those who question whether tax credits are the most effective means of promoting energy efficiency. Critics might express concerns regarding the fiscal impact of such credits on state revenues and debate the long-term benefits versus the immediate financial implications for the state budget.