2026-21928NoticeWallet

Texas Power Plant Seeks Foreign-Trade Zone Tax Break

Published Date: 10/28/2026

Notice

Summary

The Kerrville Public Utility Board wants to build a natural gas power plant in Garwood, Texas, using some imported engine parts that might usually have taxes. By using a special Foreign-Trade Zone, they can save money on these taxes while making the power plant. People have until December 7, 2026, to share their thoughts on this plan.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Imported engine parts admitted with low duties

If imported parts for the Garwood power plant (internal combustion engines for stationary power generation, engine flywheels, engine base plates, and three-phase synchronous alternators) are admitted to Foreign-Trade Zone Subzone 155F, the duty rates for those listed parts range from duty-free (0%) to 2.4%. This treatment applies under the FTZ production activity described in the notice.

Section 232/301 duties require privileged FTZ status

The request states certain materials/components may be subject to duties under section 232 of the Trade Expansion Act of 1962 and section 301 of the Trade Act of 1974, depending on country of origin. The applicable section 232 and section 301 decisions require subject merchandise to be admitted to FTZs in privileged foreign status under 19 CFR 146.41.

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Key Dates

Published Date
10/28/2026

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
Foreign-Trade Zones Board
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