Texas 2025 - 89th Regular

Texas Senate Bill SB2423 Compare Versions

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

Old	New	Differences
1	1	89R15045 SRA-D
2	2	By: Hall S.B. No. 2423
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the imposition of a tax on certain entities that receive
10	10	certain federal tax credits related to investing in and developing
11	11	renewable energy projects in an amount equal to the federal tax
12	12	credits received.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
15	15	adding Chapter 165 to read as follows:
16	16	CHAPTER 165. TAX ON CERTAIN RENEWABLE ENERGY PROJECT DEVELOPERS
17	17	SUBCHAPTER A. GENERAL PROVISIONS
18	18	Sec. 165.001. DEFINITIONS. In this chapter:
19	19	(1) "Affiliated power generation company," "electric
20	20	utility," and "exempt wholesale generator" have the meanings
21	21	assigned by Section 31.002, Utilities Code.
22	22	(2) "Electric cooperative" has the meaning assigned by
23	23	Section 11.003, Utilities Code.
24	24	(3) "Electric generator" includes:
25	25	(A) an affiliated power generation company;
26	26	(B) an electric utility or electric cooperative
27	27	that owns or operates for compensation in this state equipment or
28	28	facilities to generate electricity in this state;
29	29	(C) an exempt wholesale generator; and
30	30	(D) a power generation company.
31	31	(4) "Federal tax credit" means:
32	32	(A) the renewable energy production tax credit or
33	33	clean energy production tax credit under Section 45, Internal
34	34	Revenue Code of 1986;
35	35	(B) the investment tax credit or production tax
36	36	credit under Pub. L. No. 117-169, commonly cited as the Inflation
37	37	Reduction Act of 2022;
38	38	(C) the investment tax credit under 26 U.S.C.
39	39	Section 48; or
40	40	(D) any other federal tax credit for investment
41	41	in or production of renewable energy.
42	42	(5) "Power generation company" has the meaning
43	43	assigned by Section 31.002, Utilities Code, except that the term
44	44	does not include a distributed natural gas generation facility, as
45	45	that term is defined by Section 31.002, Utilities Code.
46	46	(6) "Renewable energy project developer" means an
47	47	electric generator or other entity that invests in the production
48	48	or storage of renewable energy.
49	49	SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
50	50	Sec. 165.021. TAX IMPOSED. A tax is imposed on each
51	51	renewable energy project developer in this state that receives a
52	52	federal tax credit.
53	53	Sec. 165.022. AMOUNT OF TAX. The amount of the tax is equal
54	54	to the amount of the federal tax credit received by the renewable
55	55	energy project developer.
56	56	Sec. 165.023. REPORT AND PAYMENT OF TAX. (a) Not later
57	57	than April 15 of each year, a renewable energy project developer on
58	58	whom the tax is imposed shall file with the comptroller a report:
59	59	(1) stating the amount of the federal tax credit the
60	60	developer received in the preceding calendar year; and
61	61	(2) that includes any other information required by
62	62	the comptroller.
63	63	(b) The developer shall send the amount of tax due for the
64	64	preceding calendar year to the comptroller with the report.
65	65	Sec. 165.024. RECORDS. A renewable energy project
66	66	developer on whom the tax is imposed shall keep a complete record
67	67	of:
68	68	(1) the amount of all federal tax credits the
69	69	developer receives along with the qualified energy resource; and
70	70	(2) any other information required by the comptroller.
71	71	SUBCHAPTER C. DISPOSITION OF PROCEEDS
72	72	Sec. 165.051. DISPOSITION OF PROCEEDS. The comptroller
73	73	shall deposit the proceeds from the collection of the tax as
74	74	follows:
75	75	(1) 25 percent to the credit of the foundation school
76	76	fund; and
77	77	(2) the remainder to the credit of the general revenue
78	78	fund.
79	79	SECTION 2. This Act takes effect September 1, 2025.