| (1) Carryforward. If an enterprise project is eligible for a credit that exceeds the limitation under paragraph (4) of this subsection, the enterprise project may carry the unused credit forward for not more than five consecutive reports. (2) Ineligibility. (A) An enterprise project is not eligible for a credit under this subsection if the enterprise project claimed a credit under Tax Code, Chapter 171, Subchapter Q, before the repeal of that subchapter on January 1, 2008. (B) A taxable entity, other than a combined group, may not claim the credit under this subsection unless the taxable entity was, on May 1, 2006, subject to the tax imposed by this chapter as it existed on that date. (C) A taxable entity that establishes its eligibility for an investment credit is not eligible to claim a franchise tax reduction that is authorized under Tax Code, §171.1015. (3) Combined group. A taxable entity that is a combined group may claim the credit for each member entity that was, on May 1, 2006, subject to the tax imposed by this chapter as it existed on that date and shall compute the amount of the credit for that member as provided by this subsection. (4) Report limitation. The total investment credit that a taxable entity claims for a report, including the amount of any installment or carryforward under subsection (g)(1) and (2) of this section may not exceed 50% of the amount of franchise tax that is due for the report before any other tax credits are applied. (5) Expiration. This subsection expires on December 31, 2009. This expiration does not affect the carryforward of a credit that was established on a report that was originally due before this expiration date. (i) Clean energy project credit. A clean energy project credit established under Government Code, Chapter 490, Subchapter H, as follows: (1) Eligibility. A franchise tax credit shall be issued to a taxable entity implementing a clean energy project in this state in connection with the construction of a new facility after: (A) the Railroad Commission of Texas (the commission) has issued a certificate of compliance for the project to the entity as provided by Natural Resources Code, §120.004. The commission may not issue a certificate of compliance for more than three clean energy projects; (B) the construction of the project has been completed; (C) the electric generating facility associated with the project is fully operational; (D) the Bureau of Economic Geology of the University of Texas at Austin verifies to the comptroller that the electric generating facility associated with the project is sequestering at least 70% of the carbon dioxide resulting from or associated with the generation of electricity by the facility; and (E) the owner or operator of the project has entered into an interconnection agreement relating to the project with the Electric Reliability Council of Texas. (2) Credit calculation. The total amount of the franchise tax credit that may be issued to the entity designated in the certificate of compliance for a clean energy project is equal to the lesser of: (A) 10% of the total capital cost of the project, including the cost of designing, engineering, permitting, constructing, and commissioning the project, the cost of procuring land, water, and equipment for the project, and all fees, taxes, and commissions paid and other payments made in connection with the project but excluding the cost of financing the capital cost of the project; or (B) $100 million. (3) Report limitation. The amount of the franchise tax credit for each report year is calculated by determining the amount of franchise tax that is due based on the taxable margin generated by a clean energy project from the generation and sale of power and the sale of any products that are produced by the electric generation facility. The amount of the franchise tax credit claimed under this section for a report year may not exceed the amount of franchise tax attributable to the clean energy project for that report year. (4) Issuance Restriction. A franchise tax credit for a clean energy project may not be issued before September 1, 2013. |
