Texas Senate Bill SB 1158

Texas 2025 - 89th Regular

• Filed: 2/7/25

Caption

Relating to the repeal of the temporary tax reduction for certain high-cost gas.

Summary

SB 1158 repeals Section 201.057 of the Texas Tax Code, which provides a temporary tax reduction for certain high-cost gas. The bill also makes a conforming amendment to the Natural Resources Code so that the repealed tax reduction no longer affects the fee imposed under Section 81.117(d). In practical terms, the measure ends the special tax relief program for qualifying gas production going forward. The bill includes a standard savings clause preserving tax liability that accrued before the effective date. Taxes owed for production occurring before September 1, 2025 would still be collected and enforced under prior law, but the repealed reduction would not apply to gas produced on or after that date, even if a comptroller approval would otherwise have extended the benefit.

Impact

SB 1158 would remove an existing tax incentive for certain high-cost gas production and restore the full tax treatment for qualifying production after the bill’s effective date. It amends the Tax Code by repealing Section 201.057 and updates the Natural Resources Code to reflect that the repealed reduction no longer applies when calculating the related fee. The bill primarily affects gas producers that had been eligible for the temporary reduction, as well as the Comptroller’s administration of the program and state revenue collections.

Sentiment

The available record shows the bill was referred to the Senate Finance Committee, but there are no committee transcripts or recorded votes provided. Based on the bill’s text and caption, the measure appears to be a revenue-raising or tax-policy rollback affecting a targeted industry incentive. Because no discussion or vote history is included, there is no documented public sentiment in the provided materials beyond the bill’s straightforward repeal language.

Contention

The main point of contention is likely the elimination of tax relief for producers of certain high-cost gas. Supporters would be expected to favor the repeal as a way to increase state revenue or end a temporary subsidy, while opponents would likely argue that the reduction helps support production of marginal or expensive gas wells and that repealing it could discourage investment or production. No specific legislators or stakeholder groups are identified in the provided materials, and no formal debate excerpts are available.