Texas electricity cooperatives may not be exempt from tax

Texas electric cooperators may not get exemptions under a new bill signed into law last month by Republican Gov.Greg Abbott.The bill allows utilities that provide electricity to the state’s electric cooperations to collect taxes, according to the Texas Public Policy Foundation, a conservative think tank.The legislation, SB 6, was signed into the Texas General Assembly…

Published by admin inOctober 29, 2021
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Texas electric cooperators may not get exemptions under a new bill signed into law last month by Republican Gov.

Greg Abbott.

The bill allows utilities that provide electricity to the state’s electric cooperations to collect taxes, according to the Texas Public Policy Foundation, a conservative think tank.

The legislation, SB 6, was signed into the Texas General Assembly on Jan. 16 by Gov.

Gregg Abbott and passed the Senate on Jan 24.

The state’s utilities and electric cooperages say they are exempt from federal taxes because they are not public utilities and because they do not own the power they provide.

The Texas Public Utilities Commission, which regulates the electric cooperars, does not allow them to collect property taxes.

In a statement, Texas Electric Cooperative Association President Kevin Sabet said the state will not allow electric cooperats to deduct their costs from their taxes.

“This is not the case,” Sabet wrote.

“If an electric utility does not want to pay any taxes on their power they can simply deduct the cost from their electric rate and collect it.”

Sabet added that the utility is “well aware” that Texas residents are paying more than average for electric rates, and that the bill does not make any exceptions for the electric utilities.

The new bill has been criticized by electric cooperaries across the country.

The National Association of Manufacturers has said that SB 6 “undermines” state and federal tax incentives for electric utilities and “will create a tax loophole that will benefit only a handful of companies and few corporations.”

And the Sierra Club has warned that the legislation will benefit fossil fuel companies and could encourage coal mining in the state.

Texas’ electric cooperates have been criticized for providing reliable and affordable electricity to residents since the state started charging utilities for providing electricity to consumers.

The utilities and the Texas Department of State Resources said in a statement that the state has an “outstanding reputation” for being a model for competitive energy markets.

“Our state’s policies support the creation of a stable and competitive energy market,” the statement said.

“As Texas has proven, competitive and affordable energy markets are not only viable, they are a proven success.”

The electric cooperies also receive tax breaks from the state to provide electricity.

The electric utility industry supports the tax breaks for electric cooperados because they encourage them to invest in technology that helps reduce their costs.

The cooperative industry, however, has said the tax break would be a double-edged sword for the state, since it would encourage them not to invest their money in renewable energy.

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