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Bill

SB 1907

Relating to the exemption of certain gas and electricity from sales and use taxes.

89th Legislature (2025) Introduced by Brandon Creighton

SB 1907 exempts designated gas and electricity supplies from Texas sales and use taxes, reducing state revenue while lowering energy costs for specified consumers or industries.

Referred to Finance
#oil&gas(i0545) #taxation--energyresources(i0810)
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Bill Summary · SB 1907

Legislative bill overview

SB 1907 would exempt certain gas and electricity supplies from Texas sales and use taxes. The bill specifically targets exemptions for fuel and power used in particular industrial, commercial, or residential contexts. This represents a narrowing of the state's tax base by removing levies from selected energy transactions.

Why is this important

Energy costs significantly impact both consumer household budgets and business operating expenses. Tax exemptions on energy can reduce costs for qualifying consumers or industries but also reduce state revenue that funds education, infrastructure, and public services. The specific categories exempted will determine whether this primarily benefits large industrial users, small businesses, or residential consumers.

Potential points of contention

  • Revenue impact: Removing sales tax on gas and electricity reduces state general revenue without identification of offset funding sources or estimated fiscal impact
  • Equity concerns: Exemptions for certain sectors may create competitive advantages for favored industries while other businesses continue paying full tax rates
  • Scope ambiguity: The bill's language on "certain gas and electricity" lacks detail on which specific uses qualify, potentially creating implementation and fairness questions about who benefits

Compiled from official sources — confirm details with the bill’s official record.

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