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House Bill 1195 |
House Author: Geren et al. |
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Effective: 5-8-21 |
Senate Sponsor: Hancock et al. |
House Bill 1195 amends the Tax Code to provide for the exclusion from a taxable entity's total revenue in computing taxable margin for franchise tax liability purposes an amount of money that the entity received from the proceeds from a qualifying loan or grant under the federal Coronavirus Aid, Relief, and Economic Security Act; from a shuttered venue operator grant or microloan program recovery assistance under the Consolidated Appropriations Act, 2021; or from a grant from the restaurant revitalization fund established under the American Rescue Plan Act of 2021. The bill authorizes a taxable entity to include any allowable expense paid using those proceeds in the determination of cost of goods sold or of compensation when calculating its gross margin. The bill applies only to a franchise tax report originally due on or after January 1, 2021.