Bill Text: TX HB3458 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for recycling of oil and gas drill cuttings.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-05-05 - Left pending in committee [HB3458 Detail]
Download: Texas-2015-HB3458-Introduced.html
84R9725 CBH-D | ||
By: Parker | H.B. No. 3458 |
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relating to a franchise tax credit for recycling of oil and gas | ||
drill cuttings. | ||
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 RECYCLING OIL AND GAS DRILL CUTTINGS | ||
Sec. 171.701. DEFINITION. In this subchapter, "oil and gas | ||
drill cuttings" means the soil, rock fragments, and pulverized | ||
material that are removed from a borehole as a result of a drilling | ||
process. | ||
Sec. 171.702. ENTITLEMENT TO CREDIT. A taxable entity is | ||
entitled to a credit in the amount and under the conditions and | ||
limitations provided by this subchapter against the taxes imposed | ||
by this chapter. | ||
Sec. 171.703. QUALIFICATION. A taxable entity is entitled | ||
to a credit under this subchapter if the taxable entity recycles oil | ||
and gas drill cuttings. | ||
Sec. 171.704. AMOUNT; LIMITATIONS. (a) The amount of the | ||
credit is equal to 50 percent of the amount paid by the taxable | ||
entity for energy consumed in connection with the recycling of oil | ||
and gas drill cuttings. | ||
(b) The credit claimed for each reporting period may not | ||
exceed the amount of franchise tax due, after any other applicable | ||
tax credits, for the period. | ||
Sec. 171.705. CARRYFORWARD. (a) If a taxable entity is | ||
eligible for a credit that exceeds the limitation under Section | ||
171.704(b), the taxable entity may carry the unused credit forward | ||
for not more than five consecutive reports. | ||
(b) A carryforward is considered the remaining portion of a | ||
credit that cannot be claimed in the current year because of the | ||
limitation under Section 171.704(b). | ||
Sec. 171.706. SALE OR ASSIGNMENT OF CREDIT. (a) A taxable | ||
entity that has an unused, unexpired credit may sell or assign all | ||
or part of the credit to one or more taxable entities, and any | ||
taxable entity to which all or part of the credit is sold or | ||
assigned may sell or assign all or part of the credit to another | ||
taxable entity. There is no limit on the total number of | ||
transactions for the sale or assignment of all or part of the | ||
credit, however, collectively the claiming of a credit for a | ||
period, including any transferred portion, is subject to the | ||
limitation provided by Section 171.704(b). | ||
(b) A taxable entity that sells or assigns a credit under | ||
this section and the taxable entity to which the credit is sold or | ||
assigned shall jointly submit written notice of the sale or | ||
assignment to the comptroller on a form promulgated by the | ||
comptroller not later than the 30th day after the date of the sale | ||
or assignment. The notice must include: | ||
(1) the date of the sale or assignment; | ||
(2) the amount of the credit sold or assigned; | ||
(3) the names and federal tax identification numbers | ||
of the taxable entity that sold or assigned the credit or part of | ||
the credit and the taxable entity to which the credit or part of the | ||
credit was sold or assigned; and | ||
(4) the amount of the credit owned by the selling or | ||
assigning taxable entity before the sale or assignment, and the | ||
amount the selling or assigning taxable entity retained, if any, | ||
after the sale or assignment. | ||
(c) The sale or assignment of a credit in accordance with | ||
this section does not extend the period for which a credit may be | ||
carried forward and does not increase the total amount of the credit | ||
that may be claimed. | ||
SECTION 2. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2016. |