By Puente H.B. No. 399 76R989 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a franchise tax credit for donation of certain 1-3 environmentally sensitive land. 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 171.003 to read as follows: 1-7 Sec. 171.003. CREDIT FOR DONATION OF CERTAIN ENVIRONMENTALLY 1-8 SENSITIVE LAND. (a) A corporation is entitled to a credit on the 1-9 tax due under this chapter in an amount and in the manner provided 1-10 by this section if the corporation: 1-11 (1) donates land to: 1-12 (A) a governmental entity of this state; or 1-13 (B) a nonprofit organization that operates in 1-14 this state and whose primary purpose is the protection of the 1-15 environment; and 1-16 (2) all or a portion of the land is located in a 1-17 recharge zone over an aquifer. 1-18 (b) The amount of the credit is 25 percent of the market 1-19 value of the portion of the donated land that is located in a 1-20 recharge zone over an aquifer. 1-21 (c) A corporation must apply for the credit on or with the 1-22 tax report for the period for which the credit is claimed. The 1-23 comptroller shall promulgate a form for the application for the 1-24 credit. A corporation must use this form in applying for the 2-1 credit. 2-2 (d) A corporation must provide to the comptroller any 2-3 information the comptroller requires to determine the validity of a 2-4 claim for the credit. The burden of establishing entitlement to 2-5 and the value of the credit is on the corporation. 2-6 (e) The credit applies only to the privilege period in which 2-7 the land was donated except that a corporation may carry all or 2-8 part of the credit forward for not more than five consecutive 2-9 privilege periods. 2-10 (f) A corporation may not claim a credit in an amount that 2-11 exceeds the amount of tax due for the privilege period. 2-12 (g) A corporation may not convey, assign, or transfer the 2-13 credit to another entity. 2-14 SECTION 2. A corporation may claim the credit under Section 2-15 171.003, Tax Code, as added by this Act, only for land donated on 2-16 or after the effective date of this Act and only on a franchise tax 2-17 report due under Chapter 171, Tax Code, on or after January 1, 2-18 2000. 2-19 SECTION 3. The importance of this legislation and the 2-20 crowded condition of the calendars in both houses create an 2-21 emergency and an imperative public necessity that the 2-22 constitutional rule requiring bills to be read on three several 2-23 days in each house be suspended, and this rule is hereby suspended, 2-24 and that this Act take effect and be in force from and after its 2-25 passage, and it is so enacted.