1-1     By:  Oliveira, Uresti, et al.                         H.B. No. 1447
 1-2          (Senate Sponsor - Van de Putte)
 1-3           (In the Senate - Received from the House May 9, 2001;
 1-4     May 10, 2001, read first time and referred to Committee on Finance;
 1-5     May 11, 2001, reported favorably by the following vote:  Yeas 7,
 1-6     Nays 0; May 11, 2001, sent to printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to a franchise tax credit for certain activities in
1-10     defense economic readjustment zones.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 171.721(2), Tax Code, is amended to read
1-13     as follows:
1-14                 (2)  "Strategic investment area" means an area that is
1-15     determined by the comptroller under Section 171.726 that is:
1-16                       (A)  a county within this state  with above state
1-17     average unemployment and below state average per capita income;
1-18     [or]
1-19                       (B)  an area within this state that is a
1-20     federally designated urban enterprise community or an urban
1-21     enhanced enterprise community; or
1-22                       (C)  a defense economic readjustment zone
1-23     designated under Chapter 2310, Government Code.
1-24           SECTION 2. (a)  This Act takes effect January 1, 2002, and a
1-25     corporation may claim a credit under Subchapters O, P, and Q,
1-26     Chapter 171, Tax Code, in a defense economic readjustment zone
1-27     designated as a strategic investment area as a result of the change
1-28     in law made by this Act only:
1-29                 (1)  on a report originally due on or after that date;
1-30     and
1-31                 (2)  for expenses and payments incurred, qualified
1-32     investments or expenditures made, and new jobs created in that area
1-33     on or after that date.
1-34           (b)  The change in law made by this Act does not affect taxes
1-35     imposed before the effective date of this Act, and the law in
1-36     effect before the effective date of this Act is continued in effect
1-37     for purposes of the liability for and collection of those taxes.
1-38                                  * * * * *