TX HB5120

Creates a franchise tax credit for taxable entities that own and construct nuclear projects first placed in service, including nuclear power generation facilities, nuclear reactors, reactor manufacturing facilities, nuclear fuel reprocessing/recycling facilities, and uranium enrichment facilities

Sets the credit amount at 10% of construction and placement-in-service costs, capped at $250 million per project

Allows unused credit amounts to be carried forward for up to 25 consecutive reporting periods if the credit exceeds the franchise tax liability

Prohibits transfer or assignment of the credit to another entity unless substantially all assets of the taxable entity are transferred in the same transaction

Applies to franchise tax reports originally due on or after January 1, 2026