73R4596 CBH-F
By D. Smith of Harris H.B. No. 1524
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a franchise tax credit for investment in biogenetic or
1-3 biomolecular research.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended
1-6 by adding Section 171.0025 to read as follows:
1-7 Sec. 171.0025. CREDIT FOR INVESTMENT IN BIOGENETIC OR
1-8 BIOMOLECULAR RESEARCH. (a) A corporation that invests in
1-9 biogenetic or biomolecular research may take a credit in an amount
1-10 allowed by this section on the tax due under this chapter if the
1-11 corporation was established and is located in this state to
1-12 commercialize, under a valid license, a biotechnology or biological
1-13 invention made or developed by or in conjunction with a university
1-14 medical and dental unit, including a chemical or biological based
1-15 pharmaceutical or diagnostic product, device, disposable product,
1-16 or service for a hospital or clinic.
1-17 (b) The amount of the credit allowed under this section is
1-18 equal to 10 percent of the amount invested during the tax year.
1-19 (c) The corporation may claim the credit on the first report
1-20 due covering the business period during which the investment was
1-21 made.
1-22 (d) A corporation may not claim for a privilege period a
1-23 credit in an amount that exceeds the amount of the tax due for that
1-24 privilege period. A corporation shall apply unused credit each
2-1 privilege period toward the tax due under this chapter until the
2-2 credit is used.
2-3 (e) A corporation may not convey, assign, or transfer the
2-4 credit allowed under this section to another entity unless all of
2-5 the assets of the corporation are conveyed, assigned, or
2-6 transferred in the same transaction.
2-7 (f) In this section, "medical and dental unit" has the
2-8 meaning assigned by Section 61.003, Education Code.
2-9 SECTION 2. Section 171.2022, Tax Code, is amended to read as
2-10 follows:
2-11 Sec. 171.2022. Exemption from Reporting Requirements. (a)
2-12 A corporation that does not owe any tax under this chapter for a
2-13 <any> period is not required to file a report under Section 171.201
2-14 or<,> 171.202<, or 171.2021>. The exemption applies only to a
2-15 period for which no tax is due.
2-16 (b) The reporting exemption does not apply to a corporation
2-17 that, for the reporting period, claims a credit under Section
2-18 171.0021 or 171.0025.
2-19 SECTION 3. This Act applies to reports originally due on or
2-20 after January 1, 1994.
2-21 SECTION 4. The importance of this legislation and the
2-22 crowded condition of the calendars in both houses create an
2-23 emergency and an imperative public necessity that the
2-24 constitutional rule requiring bills to be read on three several
2-25 days in each house be suspended, and this rule is hereby suspended.