By Oliveira                                           H.B. No. 3391
         77R7244 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the definition of a strategic investment area for
 1-3     purposes of certain tax credits.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 171.721, Tax Code, is amended to read as
 1-6     follows:
 1-7           Sec. 171.721.  DEFINITIONS. In this subchapter:
 1-8                 (1)  "Base amount," "basic research payment," and
 1-9     "qualified research expense" have the meanings assigned those terms
1-10     by Section 41, Internal Revenue Code, except that all such payments
1-11     and expenses must be for research conducted within this state.
1-12                 (2)  "Strategic investment area" means an area that is
1-13     determined by the comptroller under Section 171.726 that is:
1-14                       (A)  a county within this state with above state
1-15     average unemployment and below state average per capita income;
1-16     [or]
1-17                       (B)  an area within this state that is a
1-18     federally designated urban enterprise community or an urban
1-19     enhanced enterprise community; or
1-20                       (C)  a county within this state that has a
1-21     spaceport, as defined by Section 4D, Development Corporation Act of
1-22     1979 (Article 5190.6, Vernon's Texas Civil Statutes), as added by
1-23     Chapter 1537, Acts of the 76th Legislature, Regular Session, 1999,
1-24     within its boundaries.
 2-1           SECTION 2. This Act takes effect January 1, 2002, and applies
 2-2     to a report originally due on or after that date.