The bill, H.B. No. 3017, proposes the introduction of an additional franchise tax specifically targeting solar and wind energy producers in Texas with a capacity exceeding 1 megawatt. This new tax, outlined in the newly added Section 171.0012 of the Tax Code, will be calculated based on the total amount of federal benefits received by the taxable entity during the reporting period, which includes federal subsidies, tax credits, and other federal benefits or tax preferences.

Furthermore, the bill mandates that any taxable entity receiving such benefits must file a report, regardless of any exemptions that may have previously applied, detailing the dollar amounts of the benefits received. This reporting requirement is intended to ensure transparency and accountability in the taxation of renewable energy producers. The provisions of this act will take effect on January 1, 2026, and will apply to reports originally due on or after that date.

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