Monitoring the Session

HB 2962

Barry Bill Widens Electricity Tax Break To All Local Governments

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Jeff BarryRHouse 29

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to an exemption from taxes imposed on the gross receipts of electricity sold to political subdivisions.

Caption from analyzed text · version I.

Summary

Only school districts got it before. Utilities must pass the savings through as lower bills.

The bill widens an existing state tax break on electricity sales so it covers every political subdivision instead of only public school districts. Electric utilities and retail electric providers that sell power to cities, counties and other local governments stop owing the state gross receipts tax on those sales. Utilities must pass the tax savings through as lower bills to those local governments starting September 1, 2025.

Labels

Labels: PENDING FOREVER. Heard by the House Ways & Means committee on Mar 31, 2025 and left pending. Never voted out. The bill died.

Receipt

The receipt

89R-HB2962 · 2025-02-18

SOLD BY

Rep. Jeff BarryRHouse 29

ITEM

relating to an exemption from taxes imposed on the gross receipts of electricity sold to political subdivisions.

WHAT IT DOES

Only school districts got it before. Utilities must pass the savings through as lower bills.

The bill widens an existing state tax break on electricity sales so it covers every political subdivision instead of only public school districts. Electric utilities and retail electric providers that sell power to cities, counties and other local governments stop owing the state gross receipts tax on those sales. Utilities must pass the tax savings through as lower bills to those local governments starting September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

Net to General Revenue · FY 2026($16,300,000)

LBB estimate, flow · fiscal note version I · ( ) = negative · source

Sources

Fiscal note · version I · March 30, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB2962, As Introduced: a negative impact of ($33,000,000) through the biennium ending August 31, 2027.

First year · FY 2026 · ($16,300,000)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Ways & Means
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
FILED UNDER

DATA CENTERS, WATER AND THE GRID

THE TEXT

…“a tax under this chapter may not be imposed on the gross receipts from the sale of electricity to a political subdivision”…

Bill text, introduced version (I)

The bill exempts electricity sold to all local governments from the state gross receipts tax and requires the savings to show up on their power bills.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Jeff Barry

Donors

Texans for Lawsuit Reform PAC$100KTexas Conservative Majority PAC$59KTexas Sands PAC$33K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$100,000.00

Texans for Lawsuit Reform PAC

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Sep 18, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101008627, 101031921, 101068499.

Texas Conservative Majority PAC$58,800.00

Texas Conservative Majority PAC

$58,800.00

Cash
$35,000.00
Paid by others
$23,800.00
Total
$58,800.00
polling $17,500.00canvassing $6,300.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 9, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068499, 101070140.

Texas Sands PAC$33,000.00

Texas Sands PAC

$33,000.00

Cash
$33,000.00
Paid by others
$0.00
Total
$33,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 9, 2026 to Sep 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101039992, 101070140.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Sep 18, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101008627, 101031921, 101068499.

×

Texas Conservative Majority PAC

$58,800.00

Cash
$35,000.00
Paid by others
$23,800.00
Total
$58,800.00
polling $17,500.00canvassing $6,300.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 9, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068499, 101070140.

×

Texas Sands PAC

$33,000.00

Cash
$33,000.00
Paid by others
$0.00
Total
$33,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 9, 2026 to Sep 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101039992, 101070140.

Votes

No floor vote loaded for this bill.

Fiscal
Net to General Revenue · FY 2026($16,300,000)

LBB estimate, flow · fiscal note version I · ( ) = negative · source

Sources

Fiscal note · version I · March 30, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB2962, As Introduced: a negative impact of ($33,000,000) through the biennium ending August 31, 2027.

First year · FY 2026 · ($16,300,000)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Feb 18, 2025

03/31/2025 H Left pending in committee

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Subjects

Taxation--General

Utilities--Electric

PUBLIC UTILITY COMMISSION

Text

The text as introduced · 362 words

89R6170 CS-F

By: Barry
H.B. No. 2962

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from taxes imposed on the gross receipts of

electricity sold to political subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 182.022(d), Tax Code, is amended to read

as follows:

(d) Notwithstanding any other provisions of this chapter, a

tax under this chapter may not be imposed on the gross receipts from

the sale of electricity to a political subdivision [ public school

district customer ].

SECTION 2. (a) As soon as practicable after the effective

date of this Act, the Public Utility Commission of Texas, for an

electric utility regulated under Chapter 36, Utilities Code, shall

provide for the adjustment of the electric utility's billing of a

political subdivision to reflect any decrease in the utility's tax

liability to this state if the decrease is attributable to the

exemption in Section 182.022(d), Tax Code, as amended by this Act.

An adjustment must be made effective at the same time as the

decrease of tax liability or as soon after that decrease occurs as

is reasonably practicable. The Public Utility Commission of Texas

is not required to provide for an adjustment if the commission

enters an order for the utility under Subchapter C or D, Chapter 36,

Utilities Code, that accounts for any decrease in the utility's tax

liability attributable to the exemption in Section 182.022(d), Tax

Code, as amended by this Act. An adjustment is not a rate case under

Subchapter C or D, Chapter 36, Utilities Code.

(b) As soon as practicable after the effective date of this

Act, a retail electric provider, as defined by Section 31.002,

Utilities Code, shall adjust the billing of a political subdivision

to reflect any decrease in the retail electric provider's tax

liability to this state if the decrease is attributable to the

exemption in Section 182.022(d), Tax Code, as amended by this Act.

An adjustment must be made effective at the same time as the

decrease of tax liability or as soon after that decrease occurs as

is reasonably practicable.

SECTION 3. This Act takes effect September 1, 2025.