HB 1663

relating to a credit or refund for diesel fuel taxes paid on diesel
fuel used in this state by auxiliary power units or power take-off
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 162.227, Tax Code, is amended by adding
Subsection (d-1) to read as follows:
(d-1)  A license holder may take a credit on a return for the
period in which the purchase occurred, and a person who does not
hold a license may file a refund claim with the comptroller, if the
license holder or person paid tax on diesel fuel and the diesel fuel
is used in this state by auxiliary power units or power take-off
equipment on any motor vehicle.  If the quantity of that diesel fuel
can be accurately measured while the motor vehicle is stationary by
any metering or other measuring device or method designed to
measure the fuel separately from fuel used to propel the motor
vehicle, the comptroller may approve and adopt the use of the device
as a basis for determining the quantity of diesel fuel consumed in
those operations for a tax credit or tax refund.  If there is no
separate metering device or other approved measuring method, the
license holder may take the credit and the person who does not hold
a license may claim the refund on a percentage of the diesel fuel
consumed by each motor vehicle equipped with an auxiliary power
unit or power take-off equipment.  The comptroller shall determine
the percentage of diesel fuel for which the credit or refund may be
claimed.  The climate-control air conditioning or heating system of
a motor vehicle that has a primary purpose of providing for the
convenience or comfort of the operator or passengers is not a power
take-off system, and a credit or refund may not be allowed for the
tax paid on any portion of the diesel fuel that is used for that
purpose.  A credit or refund may not be allowed for the diesel fuel
tax paid on that portion of the diesel fuel that is used for idling.
SECTION 2.  This Act takes effect September 1, 2025.