Legislative Session Top Priorities

The Legislative Priorities for the 88th Session of the Texas Legislature:

  • Franchise Tax Credit
    The Texas Legislature passed a tax credit for clean energy projects in 2009, aimed specifically at coal projects. Then State Representative King’s bill (HB 469) passed in the House on a vote of 140-3 and in the Senate on a unanimous vote of 31-0. That particular Chapter 171 Franchise Tax credit, though now expired, provides a strong framework to incentivize carbon capture projects across industry sectors. The new credit would be aimed at carbon capture projects, defined as projects that use storage technology for the primary purpose of capturing, storing, sequestering, using, reusing, gathering or transporting carbon dioxide. The amount of the tax credit is 25% of capital costs, with a cap of $500 million. The credit would expire after 10 years.cription
  • Property Tax Exemption
    The Tax Relief for Pollution Control Property Program, called “Prop 2”, provides tax relief for facilities using certain property or equipment for pollution control. Clarifying language to expressly include carbon capture property, guaranteeing a floor for the value of the property exempted, and removing the requirement for government regulation for eligibility will ensure this program incentivizes our most promising technology for pollution control.
  • TERP Funding
    TERP is intended to help Texas meet the goals of reduced pollution and improved air quality. Making carbon capture projects explicitly eligible for TERP funding can help TCEQ and the state achieve the goal of reduced emissions while also allowing the state to continue its robust energy production. This can be done by creating a more clearly defined designation for carbon capture projects as eligible for TERP funding. This will be achieved by utilizing an already existing definition of “advanced clean energy projects.” The new language will include both carbon capture and sequestration projects and Direct Air Capture projects in the definition.
  • Liability Protection
    To create an environment that will attract businesses to invest in CCUS in Texas, the creation of a legal, economic, and regulatory framework for the industry is critical. Providing limited liability protections, such as barring nuisance claims and limiting non-economic damages, will help encourage investment in the industry in Texas.

The Hydrogen Economy

Carbon Capture, Utilization, and Storage: Incentives