| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 83R1791 DDT-F | |
| 2 | 2 | By: Murphy, Harless, Huberty, Flynn, et al. H.B. No. 711 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the computation of an electric utility's income taxes. | |
| 8 | 8 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 9 | 9 | SECTION 1. Section 36.060(a), Utilities Code, is amended to | |
| 10 | 10 | read as follows: | |
| 11 | 11 | (a) If an expense is allowed to be included in utility rates | |
| 12 | 12 | or an investment is included in the utility rate base, the related | |
| 13 | 13 | income tax benefit must be included in the computation of income tax | |
| 14 | 14 | expense to reduce the rates. If an expense is not allowed to be | |
| 15 | 15 | included in utility rates or an investment is not included in the | |
| 16 | 16 | utility rate base, the related income tax benefit may not be | |
| 17 | 17 | included in the computation of income tax expense to reduce the | |
| 18 | 18 | rates. The income tax expense shall be computed using the statutory | |
| 19 | 19 | income tax rates. [Unless it is shown to the satisfaction of the | |
| 20 | 20 | regulatory authority that it was reasonable to choose not to | |
| 21 | 21 | consolidate returns, an electric utility's income taxes shall be | |
| 22 | 22 | computed as though a consolidated return had been filed and the | |
| 23 | 23 | utility had realized its fair share of the savings resulting from | |
| 24 | 24 | that return, if: | |
| 25 | 25 | [(1) the utility is a member of an affiliated group | |
| 26 | 26 | eligible to file a consolidated income tax return; and | |
| 27 | 27 | [(2) it is advantageous to the utility to do so.] | |
| 28 | 28 | SECTION 2. This Act takes effect September 1, 2013. |