By Gutierrez H.B. No. 3520 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a franchise tax credit for expenditures made toward the 1-3 cost of nursing education. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 171, Tax Code, is amended by adding 1-6 Subchapter S to read as follows: 1-7 SUBCHAPTER S. TAX CREDIT FOR EXPENDITURES FOR NURSING EDUCATION 1-8 Sec. 171.851. DEFINITION: In the subchapter, "nursing 1-9 education" means the education of students in: 1-10 (1) a nursing program preparing individuals for 1-11 initial licensure as a registered nurse; or 1-12 (2) a masters or doctoral program who intends to teach 1-13 in a nursing program preparing students for initial licensure as 1-14 registered nurses. 1-15 Sec. 171.852. ELIGIBILITY. A corporation is eligible for a 1-16 credit against the tax imposed under this chapter in the amount and 1-17 under the conditions and limitations provided by this subchapter. 1-18 Sec. 171.853. CREDIT FOR COST OF EDUCATION OF REGISTERED 1-19 NURSE STUDENTS. (a) A corporation may claim a credit under this 1-20 subchapter only for an expenditure made toward the cost of nursing 1-21 education. 1-22 (b) A corporation may claim a credit under this subchapter 1-23 regardless of whether the corporation: 2-1 (1) provides or pays for the education directly; or 2-2 (2) donates money to a nursing school or program that 2-3 uses the money only to provide or pay for nursing education. 2-4 Sec. 171.854. LIMITATIONS. (a) The total credit under this 2-5 subchapter for a report may not exceed 20 percent of the amount of 2-6 net franchise tax due for the privilege period after any other 2-7 applicable tax credits. 2-8 (b) A corporation may claim a credit under this subchapter 2-9 for an expenditure made during an accounting period only against 2-10 the tax owed for the corresponding reporting period. 2-11 Sec. 171.855. APPLICATION FOR CREDIT. (a) A corporation 2-12 must apply for a credit under this subchapter on or with the tax 2-13 report for the period for which the credit is claimed. 2-14 (b) The comptroller shall adopt a form for the application 2-15 for the credit. A corporation must use this form in applying for 2-16 the credit. 2-17 Sec. 171.856. ASSIGNMENT PROHIBITED. A corporation may not 2-18 convey, assign, or transfer the credit allowed under this 2-19 subchapter to another entity unless all of the assets of the 2-20 corporation are conveyed, assigned, or transferred in the same 2-21 transaction. 2-22 SECTION 2. (a) This Act takes effect January 1, 2002, and 2-23 applies only to a report due on or after that date. 2-24 (b) A corporation may claim a credit under Subchapter S, 2-25 Chapter 171, Tax Code, as added by this Act, only for an 2-26 expenditure made on or after January 1, 2002.