TITLE: Relating to imposing an additional franchise tax on certain solar and wind energy producers.

SUMMARY: Relating to imposing an additional franchise tax on certain solar and wind energy producers.

FULL TEXT:
AN ACT relating to imposing an additional franchise tax on certain solar and wind energy producers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended by adding Section 171.0012 to read as follows: Sec. 171.0012. ADDITIONAL TAX: SOLAR AND WIND ENERGY PRODUCERS. (a) An additional tax is imposed on a taxable entity that is a solar or wind energy producer with a capacity of more than 1 megawatt. (b) The additional tax is equal to the sum of the amounts of all benefits the taxable entity received during the reporting period from: (1) a federal subsidy; (2) a federal tax credit; or (3) another federal benefit or tax preference. (c) A taxable entity that receives a benefit described by Subsection (b) during a reporting period shall: (1) file a report under Section 171.201 or 171.202, as applicable, regardless of whether the entity would otherwise have been exempt from filing the report as provided by Section 171.2022; and (2) include on the report the dollar amount of each of those benefits the entity received during the reporting period. SECTION 2. Section 171.0012, Tax Code, as added by 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, 2026.