Bill > HB1663

This bill modifies the Texas Tax Code to allow diesel fuel tax credits or refunds for fuel used in auxiliary power units (APUs) or power take-off (PTO) equipment on motor vehicles. Under the new provisions, licensed holders can claim a tax credit, and unlicensed individuals can file a refund claim, for diesel fuel used in these specific applications. If the fuel consumption can be accurately measured using a metering device while the vehicle is stationary, the comptroller may approve that method for determining the tax credit or refund. In cases where no separate metering device exists, the credit or refund will be based on a percentage of diesel fuel consumed, with the specific percentage to be determined by the comptroller. The bill specifically excludes climate control systems used for operator or passenger comfort from qualifying for the credit, and no refund will be allowed for fuel used for idling. The changes to the tax code will take effect on September 1, 2025, providing a clear timeline for implementation of these new tax credit provisions.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1663