TX SB1639

Imposes a new tax on electric generators that produce electricity using energy sources other than natural gas or coal, effectively targeting renewable energy sources like wind and solar

Tax rate is calculated annually by the Comptroller based on the previous year's natural gas production tax revenue divided by total cubic feet produced, then multiplied by the average cubic feet of natural gas needed to generate one kilowatt hour of electricity

Electric generators must file monthly reports and pay taxes by the 25th of each month for the preceding month's electricity production from non-gas/non-coal sources

Tax revenue is deposited into the general revenue fund and may only be appropriated for teacher pay raises at school districts and open-enrollment charter schools

First tax payment and report due March 25, 2026, with the Act taking effect January 1, 2026