87R12485 SRA-D
By: Hughes S.B. No. 1993
A BILL TO BE ENTITLED
AN ACT
relating to imposing a tax on the value of tax preferences received
by wind and solar 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 164 to read as follows:
CHAPTER 164. TAX ON VALUE OF TAX PREFERENCES RECEIVED BY WIND AND
SOLAR ELECTRIC GENERATORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 164.001. 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) "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.
(5) "Renewable energy tax preference" means a credit,
discount, exclusion, exemption, refund, special valuation, special
accounting treatment, special rate, or special method of reporting
authorized by state law that relates to a state or local tax imposed
in this state on electric generators and that is granted in
connection with the generation of electricity using wind or solar
energy, including:
(A) a tax abatement under Chapter 312; and
(B) a limitation on appraised value of property
under Chapter 313.
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 164.021. TAX IMPOSED. A tax is imposed on each
electric generator in this state that receives a renewable energy
tax preference.
Sec. 164.022. AMOUNT OF TAX. The amount of the tax is equal
to 90 percent of the value of all renewable energy tax preferences
an electric generator receives in a calendar year.
Sec. 164.023. 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 total value of renewable energy tax
preferences the electric generator received in the preceding
calendar year; 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. 164.024. RECORDS. An electric generator on whom the
tax is imposed shall keep a complete record of:
(1) each renewable energy tax preference the electric
generator receives, including the value of the preference; and
(2) any other information required by the comptroller.
SUBCHAPTER C. DISPOSITION OF PROCEEDS
Sec. 164.051. DISPOSITION AND USE OF PROCEEDS. The
comptroller shall deposit the proceeds from the tax as follows:
(1) 25 percent to the credit of the foundation school
fund; and
(2) the remainder to the credit of an account in the
general revenue fund administered by the Public Utility Commission
of Texas, which may be appropriated to the commission only for the
purpose of awarding grants or loans for innovation in electric
generation.
SECTION 2. This Act takes effect September 1, 2021.