Wind & Natural Gas Tax Incentives Draw Attention

Every tax system has tax breaks. There are deductions, exemptions, and credits that impact every tax payer. Tax breaks for wind energy and natural gas has caught the eye of Texas Comptroller Combs.

Comptroller Combs has called on the wind sector needing to stand on its own feet and will soon highlight the tax breaks and will call for a review of natural gas tax incentives.    [Comptroller Combs Wind Energy Report] [Texas Tribune]  

Refreshing Recollection: 2013 LBB GEER recommendation included modifying the natural gas tax incentives. LBB offered the following 3 recommendations:

 

1Amend statute to use mean drilling and completion costs instead of median drilling and completion costs in the calculation of the high-cost gas tax benefit.

2Amend statute to require CPA to include the estimated value of exemptions, discounts, and exclusions, when identifying taxes for inclusion in the biennial Tax Exemptions and Tax Incidence report.

3Include a rider to require CPA to conduct a study to determine at what natural gas prices, if any, the high-cost gas-rate reduction incentivizes production. 

[2013 LBB GEER Report]

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