Texas Senate Bill SB771

Texas 2025 - 89th Regular

• Filed: 1/13/25

Caption

Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.

Impact

The implementation of SB771 would create a financial incentive for truck operators and companies utilizing diesel fuel in APUs and PTO systems, potentially promoting the adoption of these units. As APUs and PTOs are used primarily for auxiliary functions and can reduce the need for idling, the legislation also aims to encourage more environmentally friendly practices within the trucking industry. By allowing credits or refunds for tax paid on such fuel, the bill endeavors to alleviate operating costs for diesel-dependent enterprises.

Summary

SB771 is a legislative bill introduced in Texas that proposes a tax credit or refund for diesel fuel taxes paid on diesel fuel utilized by auxiliary power units (APUs) or power take-off (PTO) equipment in vehicles. The bill amends Section 162.227 of the Texas Tax Code to allow license holders to claim a credit on their returns for diesel fuel used in these specific applications. Moreover, non-license holders can file a refund claim with the comptroller on the tax paid for such fuel usage. The bill is positioned to take effect on September 1, 2025.

Contention

Though specific discussions around SB771 were not directly noted, legislation aimed at tax reforms often generates various opinions among stakeholders. Potential points of contention may revolve around the possible implications for state revenue and whether such credits could lead to abuse or misclassification of fuel usage. Moreover, the legislation may face scrutiny regarding its effectiveness in promoting actual environmental benefits versus simply providing financial relief without measurable outcomes.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 162. Motor Fuel Taxes
  • Section: 227