The bill, S.B. No. 1296, proposes amendments to the Texas Tax Code regarding the tax reduction for high-cost gas. It establishes new deadlines for applications to qualify for the tax reduction, requiring that applications be submitted to the comptroller before September 1, 2025. Additionally, the bill stipulates that to obtain the maximum tax reduction, applications must be filed either within 180 days of the first production date or within 45 days of the commission's approval, whichever is later. If applications are submitted after the 180-day period but before the September deadline, the tax reduction will be decreased by 10 percent for the period between the 180th day and the application submission date.

Furthermore, the bill mandates that the application must include certification from the commission confirming that the well produces high-cost gas, along with a detailed report of drilling and completion costs. The comptroller is granted the authority to require relevant information from applicants and must be notified by the commission if a well's eligibility for the tax reduction changes. The bill clarifies that any changes in law will not affect tax liabilities that accrued before its effective date, ensuring that previous tax laws remain in effect for those liabilities. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Tax Code 201.057 (Tax Code 201)