This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.
78R5419 DLF-F
By: Keffer of Eastland H.B. No. 1710
A BILL TO BE ENTITLED
AN ACT
relating to implementation of a premium tax credit for certain
investments by insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Articles 4.51(2) and (13), Insurance Code, are
amended to read as follows:
(2) "Allocation date" means the date on which the
certified investors of a certified capital company are allocated
premium tax credits [certified capital] by the comptroller under
this subchapter.
(13) "State premium tax liability" means:
(A) any liability incurred by any person under
Subchapter A of this chapter; or
(B) if the tax liability imposed under Subchapter
A of this chapter on January 1, 2003 [2001], is eliminated or
reduced, any tax liability imposed on an insurance company or other
person that had premium tax liability under Subchapter A of this
chapter on that date.
SECTION 2. Article 4.52, Insurance Code, is amended to read
as follows:
Art. 4.52. DUTIES OF COMPTROLLER; RULES; IMPLEMENTATION.
The comptroller shall administer this subchapter and shall [may]
adopt rules and forms as necessary to implement this subchapter.
The rules must provide that:
(1) the comptroller shall begin accepting
applications for certification as a certified capital company not
later than the 30th day after the date the rules are adopted; and
(2) the comptroller shall accept premium tax credit
allocation claims on behalf of certified investors on a date not
later than the 120th day after the date the rules are adopted.
SECTION 3. Article 4.65(a), Insurance Code, is amended to
read as follows:
(a) A certified investor who makes an investment of
certified capital shall in the year of investment earn a vested
credit against state premium tax liability equal to 100 percent of
the certified investor's investment of certified capital, subject
to the limits imposed by this subchapter. Beginning with the tax
report due March 1, 2006, for the 2005 tax year, a [A] certified
investor may take up to 10 percent of the vested premium tax credit
in any taxable year of the certified investor.
SECTION 4. Article 4.66(a), Insurance Code, is amended to
read as follows:
(a) A premium tax credit allocation claim must be prepared
and executed by a certified investor on a form provided by the
comptroller. The certified capital company must file the claim with
the comptroller on the date on which the comptroller accepts
premium tax credit allocation claims on behalf of certified
investors under rules adopted under Article 4.52(2) of this code
[not later than February 15, 2002]. The premium tax credit
allocation claim form must include an affidavit of the certified
investor under which the certified investor becomes legally bound
and irrevocably committed to make an investment of certified
capital in a certified capital company in the amount allocated even
if the amount allocated is less than the amount of the claim,
subject only to the receipt of an allocation under Article 4.68 of
this code.
SECTION 5. Article 4.68(c), Insurance Code, is amended to
read as follows:
(c) Not later than the fifteenth day after the date on which
the comptroller accepts premium tax credit allocation claims on
behalf of certified investors under rules adopted under Article
4.52(2) of this code [March 1, 2002], the comptroller shall notify
each certified capital company of the amount of tax credits
allocated to each certified investor. Each certified capital
company shall notify each certified investor of their premium tax
credit allocation.
SECTION 6. Article 4.73(a), Insurance Code, is amended to
read as follows:
(a) The comptroller shall prepare a biennial report with
respect to results of the implementation of this subchapter. The
report must include:
(1) the number of certified capital companies holding
certified capital;
(2) the amount of certified capital invested in each
certified capital company;
(3) the amount of certified capital the certified
capital company has invested in qualified businesses as of January
1, 2006 [2004], and the cumulative total for each subsequent year;
(4) the total amount of tax credits granted under this
subchapter for each year that credits have been granted;
(5) the performance of each certified capital company
with respect to renewal and reporting requirements imposed under
this subchapter;
(6) with respect to the qualified businesses in which
certified capital companies have invested:
(A) the classification of the qualified
businesses according to the industrial sector and the size of the
business;
(B) the total number of jobs created by the
investment and the average wages paid for the jobs; and
(C) the total number of jobs retained as a result
of the investment and the average wages paid for the jobs; and
(7) the certified capital companies that have been
decertified or that have failed to renew the certification and the
reason for any decertification.
SECTION 7. Article 4.74, Insurance Code, is repealed.
SECTION 8. The comptroller shall adopt rules and forms as
necessary to implement Subchapter B, Chapter 4, Insurance Code, as
amended by this Act, not later than the 90th day after the effective
date of this Act.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.