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A BILL TO BE ENTITLED
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AN ACT
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relating to eligible costs and expenses for purposes of the |
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franchise tax credit for the certified rehabilitation of certified |
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historic structures. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.901(4), Tax Code, as effective |
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January 1, 2022, is redesignated as Section 171.9015, Tax Code, and |
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amended to read as follows: |
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Sec. 171.9015. ELIGIBLE COSTS AND EXPENSES. (a) Subject to |
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Subsections (b) and (c), in this subchapter, "eligible [(4) |
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"Eligible] costs and expenses" means qualified rehabilitation |
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expenditures as defined by Section 47(c)(2), Internal Revenue Code. |
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(b) Except as provided by Subsection (c), the [, except that |
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the] depreciation and tax-exempt use provisions of Section |
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47(c)(2), Internal Revenue Code, [that section] do not apply to |
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costs and expenses incurred by an entity exempt from the tax imposed |
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under this chapter by Section 171.063, and those costs and expenses |
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are eligible costs and expenses if the other provisions of Section |
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47(c)(2), Internal Revenue Code, are satisfied. |
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(c) Expenditures by an entity described by Subsection (b) to |
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rehabilitate a structure that is leased to a tax-exempt entity in a |
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disqualified lease, as those terms are defined by Section 168(h), |
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Internal Revenue Code, are not eligible costs and expenses. |
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SECTION 2. The change in law made by this Act to Section |
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171.901(4), Tax Code, applies only to costs and expenses incurred |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2022. |