89R15045 SRA-D
By: Hall S.B. No. 2423
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of a tax on certain entities that receive
certain federal tax credits related to investing in and developing
renewable energy projects in an amount equal to the federal tax
credits received.
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 CERTAIN RENEWABLE ENERGY PROJECT DEVELOPERS
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 tax credit" means:
(A) the renewable energy production tax credit or
clean energy production tax credit under Section 45, Internal
Revenue Code of 1986;
(B) the investment tax credit or production tax
credit under Pub. L. No. 117-169, commonly cited as the Inflation
Reduction Act of 2022;
(C) the investment tax credit under 26 U.S.C.
Section 48; or
(D) any other federal tax credit for investment
in or production of renewable energy.
(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.
(6) "Renewable energy project developer" means an
electric generator or other entity that invests in the production
or storage of renewable energy.
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 165.021. TAX IMPOSED. A tax is imposed on each
renewable energy project developer in this state that receives a
federal tax credit.
Sec. 165.022. AMOUNT OF TAX. The amount of the tax is equal
to the amount of the federal tax credit received by the renewable
energy project developer.
Sec. 165.023. REPORT AND PAYMENT OF TAX. (a) Not later
than April 15 of each year, a renewable energy project developer on
whom the tax is imposed shall file with the comptroller a report:
(1) stating the amount of the federal tax credit the
developer received in the preceding calendar year; and
(2) that includes any other information required by
the comptroller.
(b) The developer shall send the amount of tax due for the
preceding calendar year to the comptroller with the report.
Sec. 165.024. RECORDS. A renewable energy project
developer on whom the tax is imposed shall keep a complete record
of:
(1) the amount of all federal tax credits the
developer 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, 2025.