87R12418 CJC-D
By: Meza H.B. No. 4405
A BILL TO BE ENTITLED
AN ACT
relating to imposing a tax on certain electric generators and gas
producers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 165 to read as follows:
CHAPTER 165. TAX ON ELECTRIC GENERATORS AND GAS PRODUCERS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 165.001. DEFINITIONS. In this chapter:
(1) "Affiliated power generation company," "electric
utility," and "exempt wholesale generator" have the meanings
assigned by Section 31.002, Utilities Code.
(2) "Electric cooperative" has the meaning assigned by
Section 11.003, Utilities Code.
(3) "Electric generator" includes:
(A) an affiliated power generation company;
(B) an electric utility or electric cooperative
that owns or operates for compensation in this state equipment or
facilities to generate electricity in this state;
(C) an exempt wholesale generator; and
(D) a power generation company.
(4) "Gas" has the meaning assigned by Section 201.001.
(5) "Gas producer" means a producer as defined by
Section 201.001.
(6) "Power generation company" has the meaning
assigned by Section 31.002, Utilities Code, except that the term
does not include a distributed natural gas generation facility, as
that term is defined by Section 31.002, Utilities Code.
Sec. 165.002. COMPTROLLER POWERS AND DUTIES. The
comptroller shall adopt rules and forms necessary to implement this
chapter.
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 165.021. TAX IMPOSED ON ELECTRIC GENERATOR; AMOUNT OF
TAX. (a) A tax is imposed on each electric generator in this state.
(b) The amount of the tax imposed by this chapter on an
electric generator each year is equal to the amount of the net
profit received by the electric generator during that year that is
directly attributable to electricity sold by the electric generator
at wholesale for the price of $9,000 per megawatt hour beyond the
first four hours of sale at that price.
Sec. 165.022. TAX IMPOSED ON GAS PRODUCER; AMOUNT OF TAX.
(a) A tax is imposed on each gas producer in this state.
(b) The amount of the tax imposed by this chapter on a gas
producer each year is equal to the amount of the net profit received
by the gas producer during that year that is directly attributable
to gas sold by the gas producer at the wellhead at a price in excess
of $200 per thousand cubic feet.
Sec. 165.023. PAYMENT OF TAX. Not later than February 25 of
each year, each electric generator and gas producer on whom a tax is
imposed by this chapter shall send to the comptroller the amount of
tax due under this chapter for the preceding year.
Sec. 165.024. REPORTS. Not later than February 25 of each
year:
(1) each electric generator on whom a tax is imposed by
this chapter shall send to the comptroller a report stating:
(A) the amount of the net profit received by the
electric generator during the preceding year that was directly
attributable to electricity sold by the electric generator at
wholesale at a price in excess of $9,000 per megawatt hour beyond
the first four hours of sale at that price during that year; and
(B) any other information required by the
comptroller; and
(2) each gas producer on whom a tax is imposed by this
chapter shall send to the comptroller a report stating:
(A) the amount of the net profit received by the
gas producer during the preceding year that is directly
attributable to gas sold by the gas producer at the wellhead at a
price in excess of $200 per thousand cubic feet during the preceding
year; and
(B) any other information required by the
comptroller.
Sec. 165.025. RECORDS. An electric generator or gas
producer on whom a tax is imposed under this chapter shall keep a
complete record of all information required to be reported to the
comptroller under Section 165.024.
SUBCHAPTER C. TAX CREDIT FOR WEATHERIZATION ACTIVITIES
Sec. 165.041. DEFINITION. In this subchapter, "qualifying
weatherization activity" means an activity designed to allow
equipment used to generate electricity or produce gas to operate
when the outside temperature is at -20 degrees Fahrenheit or 120
degrees Fahrenheit or is between those temperatures.
Sec. 165.042. ELIGIBILITY AND AMOUNT OF CREDIT. (a) An
electric generator or gas producer on whom a tax is imposed under
this chapter may claim a credit against the tax in the amount and
subject to the conditions provided by this section.
(b) The amount of the credit that may claimed on a report is
equal to the total amount spent by the electric generator or gas
producer on qualifying weatherization activities during the period
on which the report is based.
(c) The amount of the credit that may be claimed on a report
may not exceed the electric generator's or gas producer's tax
liability under this chapter for the period on which the report is
based. An electric generator or gas producer may not carry forward
any amount of a credit calculated as provided under Subsection (b)
that exceeds the limitation prescribed by this subsection.
SUBCHAPTER D. ALLOCATION AND USE
Sec. 165.061. ALLOCATION OF TAX REVENUE. (a) The
comptroller shall deposit the revenue from the tax imposed under
this chapter as follows:
(1) 25 percent to the credit of the foundation school
fund; and
(2) the remainder to the credit of the general revenue
fund.
(b) Money deposited to the credit of the general revenue
fund under Subsection (a) may be appropriated only to the state
energy conservation office of the comptroller's office as
established by Chapter 447, Government Code, for the purpose of
funding energy conservation programs administered by the office.
SECTION 2. This Act takes effect September 1, 2021.