HCR 102 itself does not create a direct fiscal impact on the State of Texas because it is a concurrent resolution urging action by the federal government, rather than binding state legislation. It does not appropriate state funds, levy taxes, or mandate new spending. Instead, it expresses the will of the Texas Legislature that Congress should preserve Sections 45U, 45Y, and 48E of the federal Internal Revenue Code, which provide tax credits and incentives for nuclear energy technologies​.

At the federal level, the tax credits referenced in the resolution represent existing and future expenditures from the U.S. Treasury through foregone tax revenue. These incentives are designed to stimulate private investment in nuclear and advanced energy technologies. Preserving these credits could increase federal spending in the form of tax expenditures compared to a baseline where the credits are allowed to expire. However, proponents argue that the long-term fiscal benefit comes from supporting energy infrastructure development, job creation, and economic growth that could generate greater tax revenues over time.

From the state perspective, encouraging the growth of nuclear and natural gas infrastructure could have positive secondary fiscal effects. Expanding these industries may increase state and local tax revenues through higher employment, greater industrial activity, and higher property valuations. It could also strengthen Texas's electric grid reliability, reducing the risk of costly disruptions like those experienced during Winter Storm Uri in 2021, which had significant emergency financial impacts on the state and utilities.

In conclusion, while HCR 102 itself has no direct fiscal cost to Texas, the broader economic activity it promotes could enhance state revenues over time and bolster grid stability, which carries significant indirect fiscal benefits.

While HCR 102 is well-intentioned in its support for reliable and affordable energy sources like nuclear and natural gas, it ultimately endorses the continuation of federal tax incentives — government interventions that distort the free market and pick winners and losers. Preserving Sections 45U, 45Y, and 48E of the Internal Revenue Code would perpetuate a system where certain energy industries benefit at taxpayer expense, violating the principles of free enterprise and limited government.

A truly free and competitive energy market should not depend on targeted tax credits to thrive. Instead, nuclear and gas industries should compete based on innovation, efficiency, and market demand, without relying on special federal favors. Encouraging Congress to preserve these tax incentives continues a dangerous pattern where the government influences industrial outcomes, creates unfair advantages, and burdens taxpayers with hidden costs.

Because it affirms and extends a structure of federal tax favoritism rather than working to eliminate it, HCR 102 is inconsistent with the fundamental liberty principles of limited government and free enterprise. For these reasons, Texas Policy Research recommends that lawmakers vote NO on HCR 102.

• Individual Liberty: Access to reliable, affordable electricity supports individual autonomy — people depend on steady power for homes, businesses, and communication. Expanding nuclear and gas power generally increases individual freedom by strengthening Texas’s energy independence. However, because the resolution backs tax credits (a government economic preference), it indirectly limits broader liberty by supporting a system where some industries are advantaged over others through federal action.
• Personal Responsibility: In principle, industries should be responsible for their own success without government help. Supporting targeted federal tax credits undercuts this by continuing to prop up an industry with government-driven financial incentives. It sends the message that political lobbying, not just market success, is a legitimate business strategy, weakening the culture of personal and corporate responsibility.
• Free Enterprise: The free market works best when businesses compete without government interference. Preserving tax credits gives an artificial advantage to nuclear and gas industries over others, such as solar, wind, or emerging technologies that might otherwise compete or innovate. While the goal (reliable energy) is important, this approach compromises free enterprise by creating federally engineered market distortions.
• Private Property Rights: Reliable electricity safeguards the use, enjoyment, and value of private property. Families and businesses need dependable power to protect their homes, operations, and investments. By promoting energy stability, this resolution indirectly supports the practical exercise of private property rights across the state.
• Limited Government: Although the resolution doesn’t create new taxes or spending at the state level, it supports ongoing federal intervention into energy markets via the tax code. Encouraging Congress to continue these programs contradicts the ideal of minimizing the government’s role in the economy and maintaining a strictly limited, constitutional government.

• SCR 33 (Same As)