Harris Bill Gives Nuclear Builders A Credit Up To $250M

The text as introduced · 513 words

89R15900 BEF-D

By: Harris
H.B. No. 5120

A BILL TO BE ENTITLED

AN ACT

relating to a franchise tax credit for taxable entities that

construct a nuclear project.

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

SECTION 1. Chapter 171, Tax Code, is amended by adding

Subchapter N to read as follows:

SUBCHAPTER N. TAX CREDIT FOR CONSTRUCTION OF NUCLEAR PROJECT

Sec. 171.701. DEFINITION. In this subchapter, "nuclear

project" includes a:

(1) nuclear power generation site or facility;

(2) nuclear reactor;

(3) nuclear reactor manufacturing facility;

(4) facility for reprocessing or recycling nuclear

fuel; and

(5) facility for enriching uranium.

Sec. 171.702. ENTITLEMENT TO CREDIT. A taxable entity is

entitled to a credit in the amount and under the conditions provided

by this subchapter against the tax imposed under this chapter.

Sec. 171.703. QUALIFICATION. A taxable entity qualifies

for a credit under this subchapter if the taxable entity owns a

nuclear project that is first placed in service during the period on

which the report is based.

Sec. 171.704. AMOUNT OF CREDIT; LIMITATION. (a) Subject to

Subsection (b), the amount of the credit a taxable entity may claim

on a report is equal to the lesser of:

(1) 10 percent of the taxable entity's costs to

construct and place in service the nuclear project; or

(2) $250 million.

(b) The total credit claimed on a report, including the

amount of any carryforward under Section 171.705, may not exceed

the amount of franchise tax due for the report after applying all

other applicable credits.

Sec. 171.705. CARRYFORWARD. (a) If a taxable entity is

eligible for a credit that exceeds the limitation under Section

171.704(b), the entity may carry the unused credit forward for not

more than 25 consecutive reports.

(b) A carryforward is considered the remaining portion of a

credit that cannot be claimed on a report because of the limitation

under Section 171.704(b).

(c) Credits, including a carryforward, are considered to be

used in the following order:

(1) a carryforward under this section; and

(2) a credit for the period on which the report is

based.

Sec. 171.706. APPLICATION FOR CREDIT. (a) A taxable entity

must apply for a credit under this subchapter on or with the report

for the period for which the credit is claimed.

(b) A taxable entity must apply for the credit in the manner

prescribed by the comptroller and include with the application any

information requested by the comptroller to determine whether the

entity is eligible for the credit under this subchapter.

Sec. 171.707. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable

entity may not convey, assign, or transfer the credit allowed under

this subchapter to another taxable entity unless substantially all

of the assets of the taxable entity are conveyed, assigned, or

transferred in the same transaction.

Sec. 171.708. RULES. The comptroller shall adopt rules

necessary to implement and administer this subchapter.

SECTION 2. Subchapter N, Chapter 171, Tax Code, as added by

this Act, applies only to a report originally due on or after

January 1, 2026.

SECTION 3. This Act takes effect January 1, 2026.