Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.
The impact of SB145 on state laws would mainly be felt in the taxation framework concerning diesel fuel, particularly in how auxiliary systems are used in commercial motor vehicles. By allowing for tax credits or refunds for specific usages, the legislation aims to encourage the use of auxiliary systems that can decrease idling times, which may also contribute positively to environmental goals by reducing emissions. The bill introduces the concept that a portion of diesel fuel used in necessary auxiliary operations would be exempt from standard fueling taxes.
SB145 is legislation aimed at providing a tax credit or refund for diesel fuel taxes paid on diesel fuel used by auxiliary power units (APUs) or power take-off (PTO) equipment within the state of Texas. The bill directly amends Section 162.227 of the Texas Tax Code to establish a framework where license holders can claim a tax credit for the consumption of diesel fuel that is accurately measured while stationary. For those who do not hold a license, a refund may be claimed if they meet the established conditions under the bill's provisions.
Overall, the sentiment surrounding SB145 appears to be supportive from various stakeholders, particularly those in the trucking industry who utilize auxiliary power units. Supporters argue that this legislation helps reduce operational costs associated with long-haul transportation, thus supporting businesses in maintaining more fuel-efficient practices. However, there are also concerns from environmental groups worried that such measures could undermine broader efforts to reduce fossil fuel dependence and emissions indirectly.
Notable points of contention include how the bill defines the acceptable measuring devices or methods, as well as the exclusion of certain fuel uses, such as air conditioning and idling, from the credits. This could lead to disputes over compliance and validation of fuel usage, particularly when measuring devices are not universally adopted or available. Additionally, there is an ongoing debate on whether such tax incentives might provide disproportionate benefits to large trucking companies while potentially neglecting smaller operators who might not have the same capacity to invest in auxiliary equipment.