Texas Tax Code
§ 202.057 — TAX CREDIT FOR INCREMENTAL PRODUCTION TECHNIQUES
TX § 202.057Title 2. STATE TAXATION · Part I. SEVERANCE TAXES · Ch. 202. OIL PRODUCTION TAX · Art. B. TAX IMPOSED
Statute text
View on source(a)In this section:
(1)"Baseline production" means a lease's average monthly production during the four highest months of production in the time period from January 1, 1996, through December 31, 1996.
(2)"Commission" means the Railroad Commission of Texas.
(3)"Incremental production" means production from a qualifying lease in excess of the baseline production.
(4)"Incremental production technique" means any secondary or tertiary production enhancement technique. For wells in primary production, the use of incremental production techniques means that an expenditure of at least $5,000 must have been made to cause increased production. Operators must certify to the commission that such expenditure has been made to qualify for the tax exemption. The incremental production techniques listed in this subdivision must cause incremental production from an existing oil lease or from a newly drilled single-completion well on an existing lease.
(5)"Incremental ratio" means the amount of a qualifying lease's average monthly incremental production during the four-month period used to meet the definition of a qualifying lease divided by its average monthly total production during the same four-month period.
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