Bill Text: TX HB4405 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to imposing a tax on certain electric generators and gas producers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-29 - Referred to Ways & Means [HB4405 Detail]
Download: Texas-2021-HB4405-Introduced.html
87R12418 CJC-D | ||
By: Meza | H.B. No. 4405 |
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relating to imposing a tax on certain electric generators and gas | ||
producers. | ||
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 ELECTRIC GENERATORS AND GAS PRODUCERS | ||
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) "Gas" has the meaning assigned by Section 201.001. | ||
(5) "Gas producer" means a producer as defined by | ||
Section 201.001. | ||
(6) "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. | ||
Sec. 165.002. COMPTROLLER POWERS AND DUTIES. The | ||
comptroller shall adopt rules and forms necessary to implement this | ||
chapter. | ||
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX | ||
Sec. 165.021. TAX IMPOSED ON ELECTRIC GENERATOR; AMOUNT OF | ||
TAX. (a) A tax is imposed on each electric generator in this state. | ||
(b) The amount of the tax imposed by this chapter on an | ||
electric generator each year is equal to the amount of the net | ||
profit received by the electric generator during that year that is | ||
directly attributable to electricity sold by the electric generator | ||
at wholesale for the price of $9,000 per megawatt hour beyond the | ||
first four hours of sale at that price. | ||
Sec. 165.022. TAX IMPOSED ON GAS PRODUCER; AMOUNT OF TAX. | ||
(a) A tax is imposed on each gas producer in this state. | ||
(b) The amount of the tax imposed by this chapter on a gas | ||
producer each year is equal to the amount of the net profit received | ||
by the gas producer during that year that is directly attributable | ||
to gas sold by the gas producer at the wellhead at a price in excess | ||
of $200 per thousand cubic feet. | ||
Sec. 165.023. PAYMENT OF TAX. Not later than February 25 of | ||
each year, each electric generator and gas producer on whom a tax is | ||
imposed by this chapter shall send to the comptroller the amount of | ||
tax due under this chapter for the preceding year. | ||
Sec. 165.024. REPORTS. Not later than February 25 of each | ||
year: | ||
(1) each electric generator on whom a tax is imposed by | ||
this chapter shall send to the comptroller a report stating: | ||
(A) the amount of the net profit received by the | ||
electric generator during the preceding year that was directly | ||
attributable to electricity sold by the electric generator at | ||
wholesale at a price in excess of $9,000 per megawatt hour beyond | ||
the first four hours of sale at that price during that year; and | ||
(B) any other information required by the | ||
comptroller; and | ||
(2) each gas producer on whom a tax is imposed by this | ||
chapter shall send to the comptroller a report stating: | ||
(A) the amount of the net profit received by the | ||
gas producer during the preceding year that is directly | ||
attributable to gas sold by the gas producer at the wellhead at a | ||
price in excess of $200 per thousand cubic feet during the preceding | ||
year; and | ||
(B) any other information required by the | ||
comptroller. | ||
Sec. 165.025. RECORDS. An electric generator or gas | ||
producer on whom a tax is imposed under this chapter shall keep a | ||
complete record of all information required to be reported to the | ||
comptroller under Section 165.024. | ||
SUBCHAPTER C. TAX CREDIT FOR WEATHERIZATION ACTIVITIES | ||
Sec. 165.041. DEFINITION. In this subchapter, "qualifying | ||
weatherization activity" means an activity designed to allow | ||
equipment used to generate electricity or produce gas to operate | ||
when the outside temperature is at -20 degrees Fahrenheit or 120 | ||
degrees Fahrenheit or is between those temperatures. | ||
Sec. 165.042. ELIGIBILITY AND AMOUNT OF CREDIT. (a) An | ||
electric generator or gas producer on whom a tax is imposed under | ||
this chapter may claim a credit against the tax in the amount and | ||
subject to the conditions provided by this section. | ||
(b) The amount of the credit that may claimed on a report is | ||
equal to the total amount spent by the electric generator or gas | ||
producer on qualifying weatherization activities during the period | ||
on which the report is based. | ||
(c) The amount of the credit that may be claimed on a report | ||
may not exceed the electric generator's or gas producer's tax | ||
liability under this chapter for the period on which the report is | ||
based. An electric generator or gas producer may not carry forward | ||
any amount of a credit calculated as provided under Subsection (b) | ||
that exceeds the limitation prescribed by this subsection. | ||
SUBCHAPTER D. ALLOCATION AND USE | ||
Sec. 165.061. ALLOCATION OF TAX REVENUE. (a) The | ||
comptroller shall deposit the revenue from the tax imposed under | ||
this chapter 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. | ||
(b) Money deposited to the credit of the general revenue | ||
fund under Subsection (a) may be appropriated only to the state | ||
energy conservation office of the comptroller's office as | ||
established by Chapter 447, Government Code, for the purpose of | ||
funding energy conservation programs administered by the office. | ||
SECTION 2. This Act takes effect September 1, 2021. |