87R12486 SRA-D
By: Wilson H.B. No. 4470
A BILL TO BE ENTITLED
AN ACT
relating to imposing a tax on the amount of federal renewable energy
production credits received by wind electric generators.
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 AMOUNT OF FEDERAL PRODUCTION CREDITS RECEIVED
BY WIND ELECTRIC GENERATORS
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) "Federal production tax credit" means the
renewable energy production credit under Section 45, Internal
Revenue Code of 1986.
(5) "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.
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 165.021. TAX IMPOSED. A tax is imposed on each
electric generator in this state that receives a federal production
tax credit for which the qualified energy resource is wind.
Sec. 165.022. AMOUNT OF TAX. The amount of the tax is equal
to the amount of the federal production tax credit received by the
electric generator for which the qualified energy resource is wind.
Sec. 165.023. REPORT AND PAYMENT OF TAX. (a) Not later
than April 15 of each year, an electric generator on whom the tax is
imposed shall file with the comptroller a report:
(1) stating the amount of the federal production tax
credit the electric generator received in the preceding calendar
year for which the qualified energy resource is wind; and
(2) including any other information required by the
comptroller.
(b) The electric generator shall send the amount of tax due
for the preceding calendar year to the comptroller with the report.
Sec. 165.024. RECORDS. An electric generator on whom the
tax is imposed shall keep a complete record of:
(1) the amount of all federal production tax credits
the electric generator receives along with the qualified energy
resource; and
(2) any other information required by the comptroller.
SUBCHAPTER C. DISPOSITION OF PROCEEDS
Sec. 165.051. DISPOSITION OF PROCEEDS. The comptroller
shall deposit the proceeds from the collection of the tax 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.
SECTION 2. This Act takes effect September 1, 2021.