By:  Carriker                                          S.B. No. 237
       73R617 CBH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a temporary credit for certain franchise taxes paid by
    1-3  a corporation.
    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 171.0022 to read as follows:
    1-7        Sec. 171.0022.  TEMPORARY CREDIT FOR CERTAIN FRANCHISE TAXES
    1-8  PAID.  (a)  A corporation that paid taxes due under this chapter
    1-9  for the privilege period beginning May 1, 1991, and ending December
   1-10  31, 1991, may take a credit in an amount allowed by this section on
   1-11  the tax due under this chapter.
   1-12        (b)  The amount of the credit allowed under this section is
   1-13  equal to 33.3 percent of the tax paid under this chapter for the
   1-14  privilege period beginning May 1, 1991, and ending December 31,
   1-15  1991.
   1-16        (c)  The corporation must claim the credit beginning with the
   1-17  first report originally due under this chapter on or after January
   1-18  1, 1994.  A corporation may not claim for a privilege period a
   1-19  credit in an amount that exceeds the amount of the tax due for that
   1-20  privilege period.  If the amount of the credit exceeds the amount
   1-21  of the tax due for that privilege period, the corporation may carry
   1-22  the amount of any unused credit forward for not more than two
   1-23  consecutive privilege periods.  For purposes of this section, an
   1-24  initial period and a second period are considered one privilege
    2-1  period.
    2-2        (d)  A corporation may not convey, assign, or transfer the
    2-3  credit allowed under this section unless all assets of the
    2-4  corporation are conveyed, assigned, or transferred in the same
    2-5  transaction.
    2-6        (e)  The corporation must provide to the comptroller any
    2-7  information the comptroller requires to determine the validity of
    2-8  the credit claim.
    2-9        (f)  This section expires September 1, 1997.
   2-10        SECTION 2.  The importance of this legislation and the
   2-11  crowded condition of the calendars in both houses create an
   2-12  emergency and an imperative public necessity that the
   2-13  constitutional rule requiring bills to be read on three several
   2-14  days in each house be suspended, and this rule is hereby suspended,
   2-15  and that this Act take effect and be in force from and after its
   2-16  passage, and it is so enacted.