Texas 2013 - 83rd Regular

Texas House Bill HB2251

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the inclusion by taxable entities and combined groups that conduct certain oil and gas activities of certain costs in the cost of goods sold for purposes of the franchise tax.

Impact

If enacted, HB2251 will specifically impact the Tax Code in relation to how costs associated with gathering, storing, transporting, or processing oil and gas products are reported for franchise tax purposes. The bill's provisions will allow entities in the specified industries to better account for their operational expenses, thereby potentially reducing their overall tax liabilities. This amendment may lead to an increase in investments in infrastructure and operations by companies that will benefit from these tax deductions.

Summary

House Bill 2251 is a legislative proposal that aims to modify the calculation of certain costs in relation to the franchise tax for taxable entities primarily engaged in specific oil and gas activities. This bill provides for the inclusion of operational costs, maintenance costs, and depreciation as permissible deductions in the calculation of cost of goods sold. By allowing these deductions, the bill seeks to alleviate some tax burdens from companies involved in the oil and gas industry, thus making compliance more financially feasible for these entities.

Sentiment

The sentiment around HB2251 is likely to be mixed, with proponents within the oil and gas sector supporting the bill as a means to promote business growth and sustainability. They argue that these sectors have unique financial challenges, and the ability to deduct additional costs will enhance their competitiveness. On the other hand, some may view the bill skeptically, questioning whether such tax relief should be prioritized over other public funding needs, particularly considering the environmental impacts associated with the oil and gas industry.

Contention

While specific points of contention were not detailed in the available documents, it is reasonable to infer that potential arguments against HB2251 may center on concerns over tax fairness and the implications for state revenue. Those opposing the bill may argue that allowing additional deductions may disproportionately favor the oil and gas industry at the expense of other sectors, and could lead to significant reductions in state tax revenue that would otherwise support public services.

Companion Bills

No companion bills found.

Previously Filed As

TX SB1614

Relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.

TX HB4384

Relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.

TX HB3785

Relating to a franchise tax credit for taxable entities that employ certain apprentices.

TX HB5263

Relating to a franchise tax credit for certain taxable entities that provide certain employees with job-related skills training.

TX SB1476

Relating to a franchise tax credit for taxable entities that purchase certain theft deterrent and property loss prevention equipment.

TX HB4747

Relating to a franchise tax credit for taxable entities that provide child care.

TX HB3

Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.

TX SB3

Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.

TX HB4482

Relating to a franchise tax credit for a taxable entity that employs certain former offenders.

TX SB1748

Relating to a franchise tax credit for a taxable entity that employs certain former offenders.

Similar Bills

No similar bills found.