Bill Text: TX SB1971 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to imposing a tax on the amount of federal renewable energy production credits received by wind electric generators.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-01 - Referred to Business & Commerce [SB1971 Detail]
Download: Texas-2021-SB1971-Introduced.html
| 87R12486 SRA-D | ||
| By: Hughes | S.B. No. 1971 | |
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| relating to imposing a tax on the amount of federal renewable energy | ||
| production credits received by wind electric generators. | ||
| 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 AMOUNT OF FEDERAL PRODUCTION CREDITS RECEIVED | ||
| BY WIND ELECTRIC GENERATORS | ||
| 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 production tax credit" means the | ||
| renewable energy production credit under Section 45, Internal | ||
| Revenue Code of 1986. | ||
| (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. | ||
| SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX | ||
| Sec. 165.021. TAX IMPOSED. A tax is imposed on each | ||
| electric generator in this state that receives a federal production | ||
| tax credit for which the qualified energy resource is wind. | ||
| Sec. 165.022. AMOUNT OF TAX. The amount of the tax is equal | ||
| to the amount of the federal production tax credit received by the | ||
| electric generator for which the qualified energy resource is wind. | ||
| Sec. 165.023. REPORT AND PAYMENT OF TAX. (a) Not later | ||
| than April 15 of each year, an electric generator on whom the tax is | ||
| imposed shall file with the comptroller a report: | ||
| (1) stating the amount of the federal production tax | ||
| credit the electric generator received in the preceding calendar | ||
| year for which the qualified energy resource is wind; and | ||
| (2) including any other information required by the | ||
| comptroller. | ||
| (b) The electric generator shall send the amount of tax due | ||
| for the preceding calendar year to the comptroller with the report. | ||
| Sec. 165.024. RECORDS. An electric generator on whom the | ||
| tax is imposed shall keep a complete record of: | ||
| (1) the amount of all federal production tax credits | ||
| the electric generator 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, 2021. | ||
