By Isett                                        H.B. No. 2674

      75R7654 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the definition of Internal Revenue Code for the

 1-3     purposes of the franchise tax.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 171.001(b)(5), Tax Code, is amended to

 1-6     read as follows:

 1-7                 (5)  "Internal Revenue Code" means the Internal Revenue

 1-8     Code of 1986 [in effect for the federal tax year beginning on or

 1-9     after January 1, 1994, and before January 1, 1995,] and any

1-10     regulations adopted under that code [applicable to that period].  A

1-11     reference to a specific provision of the Internal Revenue Code

1-12     includes any subsequent amendment of the substance of that

1-13     provision or a regulation or schedule adopted under that provision.

1-14           SECTION 2.  This Act applies only to a report originally due

1-15     under Chapter 171, Tax Code, on or after the effective date of this

1-16     Act.  A report originally due before the effective date of this Act

1-17     is governed by the law applicable to the report immediately before

1-18     the effective date of this Act, and that law is continued in effect

1-19     for that purpose.

1-20           SECTION 3.  The importance of this legislation and the

1-21     crowded condition of the calendars in both houses create an

1-22     emergency and an imperative public necessity that the

1-23     constitutional rule requiring bills to be read on three several

1-24     days in each house be suspended, and this rule is hereby suspended,

 2-1     and that this Act take effect and be in force from and after its

 2-2     passage, and it is so enacted.