Bill > SB771

This bill amends the Texas Tax Code to provide a tax credit or refund for diesel fuel taxes paid on fuel used by auxiliary power units (APUs) or power take-off (PTO) equipment on motor vehicles. License holders can claim a credit on their tax return, and non-license holders can file a refund claim with the comptroller. If the diesel 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. If no separate metering device is available, the credit or refund will be based on a percentage of diesel fuel consumed by vehicles with APUs or PTO equipment, with the percentage to be determined by the comptroller. The bill specifically excludes climate-control air conditioning or heating systems used for operator or passenger comfort from qualifying for the credit, and no credit will be allowed for fuel used for idling. The bill is set to take effect on September 1, 2025, providing a new way for vehicle owners to recoup taxes on diesel fuel used for specific auxiliary operations.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB771