Reinstates the applicable credit or refund for motor fuels tax paid on diesel used to operate APUs and PTO equipment.

Amends the Tax Code to establish that the holder of an applicable license issued by the comptroller of public accounts may take a credit on a return for the period in which a 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 Texas by auxiliary power units or power take-off equipment on any motor vehicle. The bill establishes
the following:
� 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, in which case the comptroller must
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; and
� 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.

Pending Governor's action.

02/07/2025 Read first time. Referred to Senate Committee on Finance
04/23/2025 Hearing in Senate Committee on Finance. Reported favorably.
04/30/2025 Third reading. Passed Senate.
05/01/2025 Read first time in House. Referred to House Committee on Ways and Means.
05/07/2025 Reported favorably by House Committee on Ways and Means.
05/09/2025 Read second in House.
05/10/2025 Read third time. Passed House.
05/12/2025 House passage report to Senate.
05/13/2025 Signed in Senate. Signed in House.
05/13/2025 Sent to the Governor.