By:  Smith, Dalton                                    H.B. No. 1524
       73R4596 CBH-F
                                 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.