By: McLaughlin H.B. No. 5600       A BILL TO BE ENTITLED   AN ACT   relating to the development and expansion of clean hydrogen   production, distribution, and utilization in this state.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 490J, Government Code, is added to read   as follows:          Sec. 490J.001.  CLEAN HYDROGEN DEVELOPMENT FUND.  (a)  The   Clean Hydrogen Development Fund is established as a special fund in   the state treasury to finance clean hydrogen projects.          (b)  The fund shall be administered by the comptroller in   consultation with the Texas Commission on Environmental Quality and   the Texas Railroad Commission.          (c)  Money in the fund may be used to provide:                (1)  low interest loans for hydrogen infrastructure and   production facilities;                (2)  state-backed bonds for the financing of hydrogen   projects; or                (3)  state grants for hydrogen electrolyzer   manufacturing in this state.          (d)  The fund may accept federal grants, private donations,   and legislative appropriations.          SECTION 2.  Subchapter L, Chapter 171, Tax Code, is amended   by adding Section 171.603 to read as follows:          Sec. 171.603.  CLEAN HYDROGEN TAX INCENTIVES.  (a)  A person   or business entity that constructs or operates a clean hydrogen   production facility in this state may be eligible for a state tax   credit.          (b)  The credit shall be equivalent to 20 percent of   qualified capital expenditures related to hydrogen production,   transport, or storage.          (c)  A manufacturer of hydrogen electrolyzers relocating to   Texas from out of state shall receive:                (1)  a 10-year franchise tax exemption; and                (2)  a sales tax exemption on equipment purchases used   in manufacturing.          (d)  The comptroller shall adopt rules necessary for   implementation, including reporting requirements to track economic   impact.          SECTION 3.  Chapter 502, Transportation Code, is amended by   adding Section 502.257 to read as follows:          Sec. 502.257.  TEMPORARY HIGHWAY TAX RELIEF FOR HYDROGEN   VEHICLES.  (a)  Hydrogen-powered vehicles, including hydrogen   internal combustion engine and fuel cell vehicles, shall be exempt   from state highway use taxes for ten years or until cost parity with   conventional energy sources is reached, as determined by the Texas   Commission on Environmental Quality.          (b)  The exemption applies to commercial trucking, rail,   shipping, and aviation operators.          SECTION 4.  Chapter 136, Education Code, is amended by   adding Section 136.008 to read as follows:          Sec. 136.008.  WORKFORCE DEVELOPMENT INITIATIVES.  (a)  The   Texas Workforce Development Commission shall establish   partnerships with universities, technical schools, or community   colleges to provide specialized training for hydrogen sector jobs.          (b)  The Workforce Commission may provide grants to   educational institutions to develop curriculum and certification   programs for hydrogen technology.          SECTION 5.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.