Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.

SB 771 creates a tax credit or refund for businesses that pay diesel fuel taxes on fuel used specifically in auxiliary power units (APUs) or power take-off (PTO) equipment on motor vehicles in Texas. It requires separate measurement of this fuel (not used for vehicle propulsion, idling, or climate control systems designed for passenger comfort) to qualify. Businesses must document the fuel quantity via approved meters or a percentage-based calculation if measurement isn’t possible. The law takes effect September 1, 2025.