The Texas AP-180 form, officially known as the Request for Approval of Reduced Tax Rate for High Cost Gas, is a crucial document for gas producers in Texas. This form enables them to apply for a reduced tax rate on gas wells certified as high cost gas wells by the Texas Railroad Commission. Understanding how to complete and submit this form can lead to significant tax savings for eligible producers.
Ready to take the next step? Fill out the Texas AP-180 form by clicking the button below.
When filling out the Texas AP-180 form, it is crucial to follow specific guidelines to ensure a smooth process. Here are seven important do's and don'ts to keep in mind:
By adhering to these guidelines, you can help ensure that your submission is processed efficiently and accurately. Remember, attention to detail is key in navigating the complexities of tax forms.
AP-180 (Rev.10-13/8)
Request for Approval of Reduced Tax Rate for High Cost Gas
T Code 00990 1126
Taxpayer name, contact person and mailing address
You have certain rights under Chapters 552 and 559, Government Code, to review, request and correct information we have on file about you.
Contact us at the address or phone numbers listed on this form.
• Do not write in shaded areas.
• See instructions on back of form.
Complete this form and mail to:
Comptroller of Public Accounts
P.O. Box 13528
Austin, TX 78711-3528
If you have any questions about this form, please call 1-800-252-1384 or 512-463-4600.
Texas taxpayer number
In accordance with Tax Code, Section 201.057(h), drilling and completion costs included on this form are confidential and
may not be disclosed, except to the extent aggregated with other similar information to produce industry averages.
Texas Railroad Commission (RRC) Lease Information
Lease name
Name of RRC field in which well is located
Total measured well depth
True vertical well depth
API number
County of production
County code
RRC lease number
Is well indicated above a stacked lateral well?............................................................................................................................
Is well indicated above a multiple completion well? ....................................................................................................................
Was this well designated by RRC as a Statewide Rule Exception (SWR-10)?...........................................................................
YES YES YES
NO NO NO
Dates
Well spud date (year and month)
Well completion date (year and month)
RRC approval date (mm/dd/yyyy)
First date of production (year and month)
High Cost Gas Production Information
High cost gas was produced as a result of (check one):
designated tight formation
coal seams
completion below 15,000 feet
geopressured brine
devonian shale
production enhancement
Drilling and Completion Costs for High Cost Gas Well
Drilling Costs
Completion Costs
Pre-drilling costs
.00
Services
_______________________
Drilling costs
Stimulation
Casing and cementing
Production equipment
Support costs
TOTAL DRILLING COSTS
TOTAL COMPLETION COSTS
Declaration
I declare that the information in this document is true and correct to the best of my knowledge and belief.
Name and title of authorized individual (Please type or print)
Daytime phone (Area code and number)
Are you a consultant or service provider?..............................................................
YES
NO
(If yes, attach a signed Limited
Power of Attorney to this form.)
Email address
Signature
Date
Comptroller's Use Only
If applicable, enter eligible percentage rate of the allowable tax credit certified by RRC:
%
Form AP-180 (Back)(Rev.10-13/8)
General Information
Who Files: Form AP-180 must be filed by any producer seeking a reduced tax rate for gas on gas wells certified as high cost gas wells by the Texas Railroad Commission (RRC). A Limited Power of Attorney must be included with a completed Form AP-180 whenever a consultant and/or service provider files Form AP-180 on behalf of a taxpayer.
What is Needed: A copy of a letter of certification from the Texas Railroad Commission must accompany each completed Form AP-180.
When to File: To recoup credits for previously paid tax on approved reduced tax rates for high cost gas leases, the information filed on credit-amended reports must meet all of the following criteria:
•Four-Year Statute of Limitation: Credit-amended reports must be filed within four years from the due date of a production period.
•Ten Percent Penalty: Form AP-180 must be filed at the later of the 180th day after the date of first production or the 45th day after the date of approval by the commission. If Form AP-180 is not filed by the applicable deadline, the tax exemption or tax deduction is reduced by 10 percent for the period beginning on the 180th day after the first day of production and ending on the date on which Form AP-180 is filed with the Comptroller.
•One-Year Window Requirement: Credit-amended reports containing approved exempt high cost gas wells which have production periods that are prior to the Comptroller’s signature date must be filed by the first anniversary from the Comptroller’s signature date.
•Two-Year Window Requirement: If the application for certification is submitted to the Texas Railroad Commission after Jan. 1, 2004, the total allowable credit for taxes paid for reporting periods before the date the application is filed may not exceed the total tax paid on the gas that otherwise qualified for the exemption or tax reduction and that was produced during the 24 consecutive calendar months immediately preceding the month in which the application for certification was filed with the Texas Railroad Commission.
End Date of Exemption: The end date of an approved exempt high cost gas well is determined by either the earliest of 120 months from the date of first production or when the cumulative value of the tax savings equal to 50 percent of the total drilling and completion costs, whichever situation occurs first.
How to File Reports: An amended report is required to claim a credit for tax previously paid on an approved reduced tax rate for high cost gas leases. On natural gas producer and purchaser tax reports, report approved high cost gas leases as “Type 05” with the actual RRC lease number. Scenarios requiring an amended report are as follows:
•If the actual RRC lease number was previously reported as “Type 02”, credit out volumes and values reported and rebook volumes and values as “Type 05”.
•If no lease data was previously reported, report volumes and values as “Type 05” with the actual RRC lease number.
•If a drilling permit number was previously reported as “Type 02” and the corresponding lease is later approved for the reduced tax rate, credit out volumes and values and rebook as “Type 05” with the actual RRC lease number. Do not report a drilling permit number when initially reporting a “Type 05” lease.
Comptroller’s Website: Detailed Information on approved reduced tax rate for high cost gas leases is available at: http://window.state.tx.us/taxinfo/nat_gas/index.html. Click on the link labeled “CONG WEB Inquiry.”
Drilling Costs to be Included by Category
Predrilling - Damage payments to surface owner and any petroleum engineering or geoscience costs associated with the well location are not to be included. All costs related to surveying, permitting, constructing roads to well sites, including fences and gates, costs to build pad, cellar, concrete pad, rat and mouse holes, conductor hole and pipe, drilling pit and liner and the cost of any water well. Costs of any environmental surveys performed including any monitoring wells drilled at or near the wellsite and the preparation of environmental impact study that may be required and any necessary remediation.
Drilling - Day rates or footage costs including general costs associated with normal rig operations. Include rig mobilization, rig positioning and rig demobiliza- tion charges where applicable. All costs for fuel and power, mud and chemical materials used to drill and condition the hole and/or restore and maintain circulation and chemical materials such as weighting materials, lost circulation materials, crude oil, diesel oil or mineral oil used in the circulating system. Also, if applicable, include the cost for air or gas compression if used for drilling. Cost of drill bits used to drill the well from conductor to total depth including the cost of any diamond drilling bits that are used. Labor, material transportation, services, standby time, tool rentals for setting whipstocks, milling casing windows, setting casing whipstocks, cement plugs for directional drilling, any special bottomhole assemblies or equipment such as Dynadrills, Turbodrills, measurement while drilling assemblies and costs, jet deflecting stabilizers, reamers, hole openers and any other items that affect or influence the directional tendencies of a wellbore. Labor, material and services for mud logging and any drill stem testing during drilling operations. Include test analysis costs where applicable. Open-hole logging costs including wireline formation tests and inclination and directional survey costs. Costs required to cut and recover cores, including sidewall cores and core analysis. Costs of rental tools and equipment including BOP’s, drill pipe, drill, collars and bottomhole assemblies, mud motors, shale shakers, degassers, desanders, desilters and centrifuges.
Casing and Cementing - Cost of casing, float shoes, float collars, and centralizers used in any portion of the casing program including any liners and liner hangers. Cost of cement, additives and pumping charges for the cement and costs for all plugs.
Support Costs - Costs associated with hauling water, casing or rental equipment to the well site. Costs for special equipment testing. Costs for roustabout crews. Costs of direct supervision of drilling operations.
Completion Costs to be Included by Category
Services - Rig used in completion operations. If the drilling rig is used for the completion operations, the costs must be separated. All wireline operations performed in the cased hole, including logging, perforating and setting tools on wireline. Costs of any fluids used in the wellbore (except fluids used during stimulation) during well operations from the time production casing is cemented until the well is turned to sales. Costs related to testing pay intervals that cannot be attributed to any other category. Costs for site restoration and for any remediation associated with the completion operations.
Well Stimulation - All costs associated with stimulating the pay interval. This includes acidizing and hydraulic fracturing charges as well as equipment costs that are specifically related to stimulation operations such as frac tanks. It includes the cost of coil tubing units and operations if used.
Production Equipment - The production tubing string, packers, bridgeplugs, tubing anchors and gravel packing. Any equipment installed on the wellhead including the wellhead itself. All equipment costs associated with gas lift or rod pumping equipment, including both down hole and surface equipment. Also included in this category are plunger lift and cavity displacement pumps and associated equipment. All equipment from the wing valve to the sales meter that is required to produce the well. This includes production, storage and separation equipment, meters, flowlines, chemical pumps and any location costs such as gates, roads and fences associated with the lease equipment. Drilling and Completion Costs does not include any costs incurred after the outlet of a lease separator or that would otherwise be considered a marketing cost for severance tax purposes.
Support Costs - Costs to transport materials and equipment to the well site that are not specifically chargeable to other more specific operations. This category includes hauling casing or tubing to location, but would not include the cost to haul water for a fracture stimulation. Rental equipment used to complete the well. Costs of roustabout crews used during and after drilling operations have ceased. Costs of direct supervision of completion operations.
Texas Boat Transfer Form - Technical assistance includes habitat and wildlife inventories conducted by trained staff.
Rrc Forms - For each individual well extension, specific conditions must be met and documented as part of the application.
How Much Does It Cost to Get a Dba in Texas - Entities can abandon their assumed name before expiry by submitting an abandonment form.
The Texas AP-180 form is crucial for producers seeking a reduced tax rate on high-cost gas wells. When filing this form, several other documents may also be necessary to ensure compliance with Texas regulations. Below is a list of forms and documents commonly used alongside the AP-180.
Ensure all necessary documentation is prepared and submitted with the AP-180 form to avoid delays in processing. Compliance with these requirements is essential for securing the tax benefits associated with high-cost gas production in Texas.
Filling out the Texas AP-180 form can be a straightforward process, but many make common mistakes that can lead to delays or issues with tax credits. One frequent error is failing to provide the correct Texas taxpayer number. This number is essential for identifying the taxpayer and ensuring that the request is processed correctly. Omitting or misentering this number can cause significant setbacks.
Another mistake involves not including the required letter of certification from the Texas Railroad Commission. This letter is vital as it verifies that the well qualifies as a high-cost gas well. Without this document, the application may be deemed incomplete, leading to rejection.
Some individuals overlook the importance of accurate dates on the form. Dates such as the well spud date, completion date, and first date of production must be filled out correctly. Errors in these dates can affect eligibility for tax credits and create confusion during processing.
Many applicants also fail to check the correct boxes regarding the well's characteristics. For instance, indicating whether the well is a stacked lateral or a multiple completion well is crucial. Neglecting to answer these questions can result in the form being returned for clarification.
Another common oversight is not separating costs into the correct categories. The form requires specific breakdowns for drilling and completion costs. Mixing these costs can lead to inaccuracies and complications in determining the allowable tax credit.
Some people forget to sign and date the form before submission. This step might seem minor, but without a signature, the form is considered incomplete. It’s essential to ensure that all required fields are filled out, including the declaration of truthfulness.
Additionally, applicants sometimes neglect to include a Limited Power of Attorney when a consultant or service provider submits the form on behalf of the taxpayer. This document is necessary to authorize the representative to act on the taxpayer's behalf, and its absence can halt the process.
Lastly, many individuals do not adhere to the filing deadlines. Missing these deadlines can lead to penalties and a reduction in the tax exemption or deduction. Staying aware of the timeline is crucial to avoid unnecessary financial repercussions.
Understanding the Texas AP-180 form is essential for producers seeking a reduced tax rate for high-cost gas wells. However, several misconceptions can lead to confusion. Here are seven common misunderstandings:
By addressing these misconceptions, producers can navigate the complexities of the Texas AP-180 form more effectively and ensure they take advantage of available tax benefits.
1. Understand Who Should File: Only producers of high-cost gas wells certified by the Texas Railroad Commission should complete and submit Form AP-180. If a consultant or service provider files on behalf of a taxpayer, a Limited Power of Attorney must accompany the form.
2. Gather Required Documentation: A letter of certification from the Texas Railroad Commission is mandatory when submitting Form AP-180. Ensure all necessary documents are prepared in advance to avoid delays.
3. Be Aware of Filing Deadlines: Timeliness is crucial. Form AP-180 must be filed within specific timeframes to avoid penalties. Missing the deadline can result in a 10% reduction in the tax exemption or deduction.
4. Know the Cost Categories: Accurately categorize drilling and completion costs when filling out the form. Include all relevant expenses, but exclude costs incurred after the lease separator. This ensures compliance and maximizes potential tax credits.
Filling out the Texas AP-180 form is a straightforward process that requires specific information regarding your gas well and its associated costs. This form must be completed accurately to ensure that you can apply for a reduced tax rate for high-cost gas wells certified by the Texas Railroad Commission. Below are the steps to fill out the form correctly.
After submitting the AP-180 form, you may want to keep a copy for your records. If you have questions or need assistance, you can contact the Texas Comptroller's office using the phone numbers listed on the form. Be mindful of deadlines to ensure you can take full advantage of any tax credits available for high-cost gas production.