The proposed bill, S.B. No. 2423, introduces a new tax on renewable energy project developers in Texas who receive federal tax credits for investing in and developing renewable energy projects. This tax is equal to the amount of federal tax credits received by these developers. The bill establishes definitions for key terms such as "renewable energy project developer," "federal tax credit," and various types of energy companies, ensuring clarity in the application of the tax. Developers are required to file an annual report with the comptroller by April 15, detailing the federal tax credits received and the corresponding tax due.

Additionally, the bill outlines the collection and disposition of the tax proceeds. The comptroller is tasked with depositing 25% of the collected tax into the foundation school fund, with the remainder going to the general revenue fund. This legislation is set to take effect on September 1, 2025, aiming to generate revenue from entities benefiting from federal incentives for renewable energy projects.

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