HB 5120

This bill creates a franchise tax credit for businesses that construct and operate nuclear projects in Texas, including nuclear power generation sites, reactors, manufacturing facilities, and uranium enrichment or nuclear fuel processing facilities. Eligible entities can claim a tax credit equal to the lesser of 10% of their construction costs or $250 million when they first place a nuclear project into service, with unused credits able to be carried forward for up to 25 years. The credit cannot be transferred to other entities unless substantially all assets are transferred in the same transaction, and it applies to reports due on or after January 1, 2025, with the bill taking effect on that date.