HB 2446

83(R) - 2013
Natural Resources

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Myra Crownover

Bill Caption

Relating to the qualifications of certain electric generation projects for programs designed to encourage the capture and utilization of carbon dioxide for use in enhanced oil recovery.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB2446, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2015. However, the bill will result in a negative impact of ($4,000,000) beginning in FY 2017.

Bill Analysis

Summary: HB 2446 would extend a tax credit for clean energy projects that seek to catch carbon dioxide emissions from natural gas to use in oil production. Other fuel producers, such as coal, have access to these credits that amount to $100 million. HB 2446 simply makes natural gas projects eligible for these credits while not increasing the amount of total tax credits available. HB 2446 also amends law so that these industries, including natural gas, cannot claim property tax exemptions under Chapter 313, Tax Code, and receive a franchise tax credit under Chapter 171, tax code, at the same time.

Analysis: We do not support special tax credits targeted to benefit a specific industry to the exclusion of others. HB 2446 is palatable only because it does not expand the amount of funds to be given away in tax credits. HB 2446 simply allows the natural gas industry equal opportunity to these credits that other energy producers currently have access to. We are neutral on HB 2446 because it seeks to address an issue of unequal treatment of natural gas producers under Texas’ tax law.