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AN ACT
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relating to the franchise tax treatment of certain loans and grants |
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made under the federal Coronavirus Aid, Relief, and Economic |
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Security Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended |
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by adding Section 171.10131 to read as follows: |
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Sec. 171.10131. PROVISIONS RELATED TO CERTAIN MONEY |
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RECEIVED FOR COVID-19 RELIEF. (a) In this section, "qualifying |
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loan or grant proceeds" means the amount of money received by a |
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taxable entity that: |
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(1) is: |
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(A) a loan or grant under the Coronavirus Aid, |
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Relief, and Economic Security Act (15 U.S.C. Section 9001 et seq.), |
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as amended by the Paycheck Protection Program Flexibility Act of |
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2020 (Pub. L. No. 116-142), the Consolidated Appropriations Act, |
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2021 (Pub. L. No. 116-260), the American Rescue Plan Act of 2021 |
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(Pub. L. No. 117-2), and the PPP Extension Act of 2021 (Pub. L. |
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No. 117-6); |
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(B) a shuttered venue operator grant under |
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Section 324 of the Consolidated Appropriations Act, 2021 (Pub. L. |
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No. 116-260), as amended by Section 5005 of the American Rescue |
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Plan Act of 2021 (Pub. L. No. 117-2); |
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(C) microloan program recovery assistance under |
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Section 329 of the Consolidated Appropriations Act, 2021 (Pub. L. |
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No. 116-260); or |
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(D) a grant from the restaurant revitalization |
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fund established under Section 5003 of the American Rescue Plan Act |
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of 2021 (Pub. L. No. 117-2); and |
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(2) is not included in the taxable entity's gross |
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income for purposes of federal income taxation under: |
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(A) Section 276 or 278 of the Consolidated |
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Appropriations Act, 2021 (Pub. L. No. 116-260); or |
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(B) Section 9672 or 9673 of the American Rescue |
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Plan Act of 2021 (Pub. L. No. 117-2). |
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(b) Notwithstanding any other law, a taxable entity: |
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(1) shall exclude from its total revenue, to the |
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extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or |
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(c)(3), qualifying loan or grant proceeds; |
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(2) may include as a cost of goods sold under Section |
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171.1012 any expense paid using qualifying loan or grant proceeds |
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to the extent the expense is otherwise includable as a cost of goods |
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sold under that section; and |
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(3) may include as compensation under Section 171.1013 |
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any expense paid using qualifying loan or grant proceeds to the |
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extent the expense is otherwise includable as compensation under |
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that section. |
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SECTION 2. This Act applies only to a report originally due |
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on or after January 1, 2021. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1195 was passed by the House on April |
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1, 2021, by the following vote: Yeas 148, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1195 on April 23, 2021, by the following vote: Yeas 143, Nays |
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1, 1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1195 was passed by the Senate, with |
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amendments, on April 19, 2021, by the following vote: Yeas 31, |
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Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |