Bill Text: TX HB4035 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to an oil and gas severance tax credit for certain community investments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-04-02 - Left pending in committee [HB4035 Detail]
Download: Texas-2015-HB4035-Introduced.html
| 84R12183 CJC-D | ||
| By: Darby | H.B. No. 4035 | |
|
|
||
|
|
||
| relating to an oil and gas severance tax credit for certain | ||
| community investments. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle I, Title 2, Tax Code, is amended by | ||
| adding Chapter 205 to read as follows: | ||
| CHAPTER 205. OIL AND GAS TAX CREDIT FOR COMMUNITY INVESTMENT | ||
| Sec. 205.001. DEFINITIONS. In this chapter: | ||
| (1) "No water production technique" means a method of | ||
| producing oil and gas that uses nitrogen, carbon dioxide, or fluids | ||
| other than water. | ||
| (2) "Operator" means the person responsible for the | ||
| actual physical operation of an oil or gas well. | ||
| (3) "Public junior college" has the meaning assigned | ||
| by Section 61.003, Education Code. | ||
| (4) "Water infrastructure and road project" means a | ||
| project to acquire, construct, finance, improve, operate, and | ||
| maintain water infrastructure and macadamized, graveled, or paved | ||
| roads, or improvements, including storm drainage, in aid of those | ||
| roads. | ||
| Sec. 205.002. TAX CREDIT. (a) The operator of an oil or gas | ||
| well is entitled to a credit against the tax imposed by Chapter 201 | ||
| or 202, as applicable, as provided by this chapter if the operator: | ||
| (1) implements a no water production technique to | ||
| produce oil or gas in this state; | ||
| (2) contributes towards the costs of a water | ||
| infrastructure and road project in this state; or | ||
| (3) makes a monetary donation to a public junior | ||
| college in this state. | ||
| (b) Subject to Subsection (c), the amount of the credit to | ||
| which an operator is entitled under this chapter is an amount equal | ||
| to: | ||
| (1) the costs to the operator of implementation of the | ||
| no water production technique; | ||
| (2) the amount of money the operator contributes to a | ||
| water infrastructure and road project; or | ||
| (3) the amount of money the operator donates to a | ||
| public junior college. | ||
| (c) The amount of the credit to which an operator is | ||
| entitled under this chapter may not exceed $10,000. An operator may | ||
| not claim an amount of the credit on a report that exceeds the | ||
| amount of tax due on the report. Any unused amount of the credit may | ||
| be carried forward to subsequent reports until the credit amount is | ||
| exhausted. An operator may not receive more than one type of tax | ||
| credit authorized under Subsection (a), and may claim only one tax | ||
| credit for that type of credit. | ||
| (d) The credit is allocated to each person who bears the tax | ||
| under Section 201.205 or 202.156, as applicable, according to the | ||
| person's proportionate share in the oil or gas produced. | ||
| Sec. 205.003. APPLICATION. (a) To qualify for the credit | ||
| provided under this chapter, the person responsible for paying the | ||
| tax must apply to the comptroller. | ||
| (b) The application must include any information required | ||
| by the comptroller. | ||
| SECTION 2. The comptroller shall adopt rules necessary to | ||
| administer Chapter 205, Tax Code, as added by this Act, not later | ||
| than December 31, 2015. | ||
| SECTION 3. Chapter 205, Tax Code, as added by this Act, | ||
| applies only to oil or gas produced on or after the effective date | ||
| of this Act. Oil or gas produced before the effective date of this | ||
| Act is subject to the law in effect when the oil or gas was produced, | ||
| and that law is continued in effect for that purpose. | ||
| SECTION 4. The change in law made by this Act does not | ||
| affect tax liability accruing before the effective date of this | ||
| Act. That liability continues in effect as if this Act had not been | ||
| enacted, and the former law is continued in effect for the | ||
| collection of taxes due and for civil and criminal enforcement of | ||
| the liability for those taxes. | ||
| SECTION 5. (a) Except as provided by Subsection (b) of this | ||
| section, this Act takes effect January 1, 2016. | ||
| (b) Section 2 of this Act takes effect immediately if this | ||
| Act receives a vote of two-thirds of all the members elected to each | ||
| house, as provided by Section 39, Article III, Texas Constitution. | ||
| If this Act does not receive the vote necessary for immediate | ||
| effect, Section 2 of this Act takes effect September 1, 2015. | ||
