Tax News

CCH (cch.taxgroup.com) reports:

A producer of oil recovered through an enhanced oil recovery project that qualifies for the Texas recovered oil production tax rate is entitled to an additional 50% reduction in that rate if in the process of oil recovery the project uses carbon dioxide that
-- is captured from an anthropogenic source in Texas;
-- would otherwise be released into the atmosphere as industrial emissions;
-- is measurable at the source of capture; and
-- is sequestered in one or more geological formations in Texas following the enhanced oil recovery process.
In the event a portion of the carbon dioxide used does not satisfy the above criteria because it is not anthropogenic, the tax reduction will be reduced to reflect the proportion of carbon dioxide that does satisfy the criteria.
Property tax incentive provisions regarding a limitation on appraised value of certain property are amended to include an advanced clean energy project rather than a gasification project for a coal and biomass mixture. An "advanced clean energy project" is a project for which a Texas Clean Air Act permit application has been received by the Texas Natural Resources Conservation Commission on or after January 1, 2008, and before January 1, 2020, and that meets specified environmental criteria.
Utility tax provisions of the legislation are covered in a related story. (TAXDAY, 2007/06/22, S.31)
H.B. 3732, Laws 2007, effective September 1, 2007.