Texas will begin issuing a franchise tax credit for up to three clean energy projects. The credit cannot be issued before the later of Sept. 1, 2018, or the expiration of an agreement under the Texas Economic Development Act, Chapter 313 regarding the clean energy project for which the credit is issued. The total amount of the credit to be issued to an entity is the lesser of $100 million or 10 percent of the total capital cost of the project. The credit can be carried forward for no more than 20 consecutive years. The entity designated in the certificate of compliance for a clean energy project can assign the credit to one or more taxable entities. The credit cannot be reassigned to another taxable entity.
A clean energy project is defined in Natural Resources Code Section 120.001(2).
The entity must provide the following information to the Comptroller's office: