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A BILL TO BE ENTITLED
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AN ACT
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relating to a refund of sales and use taxes paid on the purchase or |
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use of building materials used to construct certain subsidized |
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housing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
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by adding Section 151.4293 to read as follows: |
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Sec. 151.4293. REFUND FOR BUILDING MATERIALS USED IN |
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CERTAIN AFFORDABLE HOUSING PROJECTS. (a) In this section, |
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"qualifying affordable housing" means housing: |
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(1) that is located in this state; |
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(2) the construction of which is subsidized by a |
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federal or state tax credit issued for the purpose of constructing |
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affordable housing; and |
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(3) for which the state or federal tax credit |
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described by Subdivision (2) is awarded on or after September 1, |
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2025. |
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(b) A person is entitled to a refund in the amount and under |
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the conditions provided by this section of the taxes paid under this |
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chapter on the purchase or use of building materials used to |
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construct qualifying affordable housing. |
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(c) Subject to Subsections (d) and (e), the amount of the |
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refund to which a person is entitled under this section is equal to |
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the sum of: |
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(1) for each single-family home that is qualifying |
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affordable housing that the person constructs, the amount of the |
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taxes paid under this chapter on not more than $50,000 of building |
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materials purchased for the construction of the home during the |
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180-day period preceding the date the person files an application |
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for the refund under Subsection (f); and |
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(2) for each residential unit constructed by the |
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person in an apartment complex that is qualifying affordable |
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housing, the amount of the taxes paid under this chapter on not more |
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than $5,000 of building materials purchased for the construction of |
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the unit during the 180-day period preceding the date the person |
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files an application for the refund under Subsection (f). |
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(d) A person may not claim more than: |
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(1) $100,000 in refunds under Subsection (c)(1) in a |
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calendar year; and |
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(2) $100,000 in refunds under Subsection (c)(2) in a |
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180-day period. |
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(e) The total amount of refunds that may be awarded under |
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this section to all applicants in a state fiscal year may not exceed |
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$2 million. The refunds shall be allocated on a first-come, |
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first-served basis, based on the date each application is submitted |
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under Subsection (f). |
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(f) A person must apply to the comptroller in the manner |
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prescribed by the comptroller to receive a refund under this |
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section. A person may not again submit an application for a refund |
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before the 180th day after the date the person last submitted an |
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application for a refund under this section. |
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(g) The comptroller shall adopt rules necessary to |
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implement and administer this section. |
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SECTION 2. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and civil and criminal enforcement of the |
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liability for those taxes. |
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SECTION 3. This Act takes effect September 1, 2025. |