The bill proposes the introduction of a new tax specifically targeting renewable energy project developers in Texas who receive federal tax credits for their investments in renewable energy projects. Under the newly added Chapter 165 of the Tax Code, a tax will be imposed on these developers equal to the amount of federal tax credits they receive. The bill outlines definitions for key terms such as "renewable energy project developer," "federal tax credit," and various types of electric generators, ensuring clarity in the application of the tax.

Additionally, the bill mandates that renewable energy project developers file an annual report with the comptroller by April 15, detailing the federal tax credits received in the previous year and including any other required information. The tax proceeds will be allocated, with 25% directed to the foundation school fund and the remainder to the general revenue fund. The bill is set to take effect on September 1, 2025.

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