Experienced Local Tax Counsel for All Matters Involving Texas Energy Taxes
Brown PC provides experienced local tax counsel for all Texas energy tax matters. We can also assist producers, distributors, users, and other parties with federal energy tax matters. Our tax lawyers have decades of experience advising and representing clients in connection with complex corporate tax issues, and, with offices in Fort Worth, we have particular experience assisting clients in the oil, gas, and renewable energy sectors.
Our Texas energy tax practice is led by founding attorney Lawrence Brown. Mr. Brown has been assisting clients with Texas and federal tax matters for more than 25 years. He is intimately familiar with the unique (and uniquely complex) tax issues faced by companies in the energy industry, and he relies on his experience to provide custom-tailored and forward-thinking advice focused on mitigating his clients’ tax liability and ensuring that they will be fully prepared to withstand scrutiny from the Texas Comptroller and the Internal Revenue Service (IRS) if necessary.
Our Areas of Practice: Energy Tax Issues, Transactions & Compliance
Within our Texas energy tax practice, we assist corporate clients with all energy-related tax matters—from tax planning and transaction structuring to Texas sales tax compliance and defense. Our lawyers are available to assist with matters including (but not limited to):
Energy Tax Equity Transactions
Our lawyers are available to advise parties involved in tax equity transactions in Texas. We advise investors, energy producers, contractors, and other parties regarding all aspects of structuring these transactions in compliance with Texas and federal law. We also represent parties in tax equity contract negotiations and provide representation for disputes arising from tax equity transactions in the energy industry.
Energy Tax Incentives and Credits
Our lawyers are also available to advise parties regarding state and federal energy tax incentives involving production and other energy-related operations in Texas. This includes credits and other incentives related to in-state production, efficiency, and other legislative and regulatory priorities. When claiming energy-related tax incentives, it is imperative that taxpayers not only accurately assess their eligibility but also thoroughly document it.
Energy Sales Tax Compliance
In Texas, sales tax compliance is a major concern for companies involved in the oil, gas, and renewable energy sectors. The Texas Comptroller strictly enforces sales tax compliance, and there are various state-level tax obligations that are specific to natural gas, well servicing, and other segments of the energy industry. Our lawyers are intimately familiar with these obligations and are available to assist companies in all segments of the energy industry with Texas sales tax compliance management.
Energy Sales Tax Audits
Like all companies doing business in Texas, companies involved in all segments of the energy industry are subject to the oversight of the Texas Comptroller. The Texas Comptroller regularly assesses compliance with the state’s sales tax laws by conducting invasive sales tax audits. Regardless of a company’s compliance record, responding effectively to a Texas sales tax audit requires an informed and strategic defense. Our lawyers routinely represent clients in these matters.
Other Energy Tax Controversies
Our lawyers have extensive experience representing clients in other Texas tax controversies, including both energy-specific and non-energy-specific state tax issues. We have similar experience in federal tax controversies involving the IRS. If your company is facing a high-stakes tax controversy in Texas, we invite you to get in touch to discuss how we can help.
FAQs: Texas Energy Tax Compliance and Defense
What businesses are required to pay Texas’ oil and gas well servicing tax?
Texas’s oil and gas well servicing tax applies to two categories of businesses: (i) those that “own, control, or furnish the tools, instruments and equipment used in providing well service;” and, (ii) those that “use any chemical, electrical or mechanical process in providing service at any oil or gas well during the drilling and completion, or reworking or reconditioning, of the oil or gas well.” Specific taxable services include (but are not limited to) acidizing, cementing, fracturing, and surveying.
What businesses are required to pay Texas’ natural gas tax?
Producers are primarily responsible for paying Texas’ natural gas tax. However, as the Texas Comptroller makes clear, “[d]epending on the contract between producer and purchaser, both parties can agree that a purchaser will pay the natural gas taxes.” Specific rates vary for natural gas and condensate production, and businesses liable for Texas’ natural gas tax must also pay an associated regulatory fee.
Who pays compressed natural gas (CNG) and liquefied natural gas (LNG) tax in Texas?
Dealers are responsible for collecting and remitting Texas sales tax on compressed natural gas (CNG) and liquefied natural gas (LNG) sales. This includes businesses that have their own stores of CNG or LNG, which are also classified as dealers (and required to obtain CNG/LNG dealer licenses) under Texas law.
Can my facility still claim a sales tax exemption on electricity and natural gas?
Some businesses can claim a Texas sales tax exemption on electricity and natural gas, while others cannot. Our lawyers can assess your business’ eligibility to claim an energy sales tax exemption and assist with documenting your business’ eligibility if warranted.
How does the “anti-ESG” legislation (SB 13) affect my project’s state tax status or financing?
Texas Senate Bill 13 (SB 13) was ruled unconstitutional in February 2026. With litigation ongoing, the state’s “anti-ESG” legislation remains uncertain. If you need more information about the implications of SB 13 and the current status of the litigation surrounding the bill, our lawyers can help.
Discuss Your Company’s Energy Tax Issues with an Experienced Texas Tax Attorney in Confidence
If you have questions about any Texas or federal energy tax issues, we invite you to get in touch. We work with businesses throughout the state and nationwide. To request a confidential consultation with an experienced Texas tax attorney at Brown PC, give us a call at 888-870-0025 or contact us online today.