Texas 2025 - 89th Regular

Texas House Bill HB3830 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R14895 CJD-F
2	2	By: Curry H.B. No. 3830
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a franchise tax credit for certain watershed protection
10	10	activities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 171, Tax Code, is amended by adding
13	13	Subchapter N to read as follows:
14	14	SUBCHAPTER N. TAX CREDIT FOR CERTAIN WATERSHED PROTECTION
15	15	ACTIVITIES
16	16	Sec. 171.701. DEFINITIONS. In this subchapter:
17	17	(1) "Agricultural waste" has the meaning assigned by
18	18	Section 26.001, Water Code.
19	19	(2) "Concentrated animal feeding operation" has the
20	20	meaning assigned by 30 T.A.C. Section 321.32 on the effective date
21	21	of this subchapter.
22	22	(3) "Major sole source impairment zone" has the
23	23	meaning assigned by Section 26.502, Water Code.
24	24	Sec. 171.702. ELIGIBILITY FOR CREDIT. A taxable entity is
25	25	eligible for a credit against the tax imposed under this chapter in
26	26	the amount and under the conditions provided by this subchapter.
27	27	Sec. 171.703. QUALIFICATION. A taxable entity qualifies
28	28	for a credit under this subchapter if during the period covered by a
29	29	report the taxable entity:
30	30	(1) operates a concentrated animal feeding operation:
31	31	(A) under a permit issued under Subchapter L,
32	32	Chapter 26, Water Code; and
33	33	(B) that is located in a major sole source
34	34	impairment zone; and
35	35	(2) transports agricultural waste outside of the major
36	36	sole source impairment zone for disposal, use, or application to a
37	37	waste management unit or waste application field located outside of
38	38	the zone.
39	39	Sec. 171.704. AMOUNT OF CREDIT; LIMITATION. (a) Subject to
40	40	Subsection (b), the amount of credit for a report is equal to the
41	41	total costs of fuel, labor, and equipment used to transport waste as
42	42	described by Section 171.703(2) during the period covered by the
43	43	report.
44	44	(b) The total credit for a report, including the amount of
45	45	any carryforward under Section 171.705, may not exceed 50 percent
46	46	of the franchise tax due for the report after all other applicable
47	47	tax credits.
48	48	Sec. 171.705. CARRYFORWARD. (a) A taxable entity that is
49	49	eligible for a credit that exceeds the limitation under Section
50	50	171.704(b) may carry the unused credit forward for not more than 10
51	51	consecutive reports.
52	52	(b) Credits, including credit carryforwards, are considered
53	53	to be used in the following order:
54	54	(1) a credit carryforward under this subchapter; and
55	55	(2) a credit for the period on which the report is
56	56	based.
57	57	Sec. 171.706. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable
58	58	entity may not convey, assign, or transfer the credit allowed under
59	59	this subchapter to another entity unless substantially all of the
60	60	assets of the taxable entity are conveyed, assigned, or transferred
61	61	in the same transaction.
62	62	Sec. 171.707. APPLICATION FOR CREDIT. A taxable entity
63	63	must apply for a credit under this subchapter on or with the report
64	64	for the period for which the credit is claimed and submit any
65	65	information requested by the comptroller to determine the entity's
66	66	eligibility for the credit or the amount of the credit.
67	67	Sec. 171.708. RULES. The comptroller shall adopt rules and
68	68	forms necessary to implement this subchapter.
69	69	Sec. 171.709. REPORTING OF ESTIMATES AND COLLECTION OF
70	70	INFORMATION. (a) Before the beginning of each regular session of
71	71	the legislature, the comptroller shall submit to the legislature
72	72	and the governor an estimate for the preceding fiscal biennium of:
73	73	(1) the total number of taxable entities that applied
74	74	for a credit under this subchapter;
75	75	(2) the total amount of credits received under this
76	76	subchapter; and
77	77	(3) the total amount of credits carried forward under
78	78	Section 171.705.
79	79	(b) The comptroller shall provide the estimate required by
80	80	this section as part of the report required by Section 403.014,
81	81	Government Code.
82	82	Sec. 171.710. EXPIRATION; EXCEPTION. (a) This subchapter
83	83	expires December 31, 2035.
84	84	(b) The expiration of this subchapter does not affect the
85	85	carryforward of a credit under Section 171.705 or a credit for which
86	86	an entity applies after the date this subchapter expires based on a
87	87	cost for which a taxable entity became eligible for a credit before
88	88	that date.
89	89	SECTION 2. Subchapter N, Chapter 171, Tax Code, as added by
90	90	this Act, applies only to a report originally due on or after the
91	91	effective date of this Act.
92	92	SECTION 3. This Act takes effect January 1, 2026.