SB2423 - 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.

  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.