House Bill No. 5001 proposes the introduction of a new tax on the generation of electricity by certain electric generators in Texas, specifically targeting those that utilize energy sources other than natural gas or coal. The bill adds Chapter 165 to Subtitle E, Title 2 of the Tax Code, which includes definitions for terms such as "electric generator," "electric utility," and "power generation company." The tax rate will be determined annually by the comptroller, based on the revenue generated from a related tax and the amount of natural gas produced in the state. Electric generators will be required to report their electricity production and pay the tax monthly.

The proceeds from this tax will be deposited into the general revenue fund, with a stipulation that the funds can only be appropriated for teacher pay raises in school districts or open-enrollment charter schools. The bill specifies that the first tax payment and report will not be due until March 25, 2026, and the act is set to take effect on January 1, 2026.

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