Hall Renewable Tax Bill Reaches Any Entity That Invests In Storage

The text as introduced · 549 words

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.