78R7009 SMJ-F

By:  Wong                                                         H.B. No. 2209



A BILL TO BE ENTITLED

AN ACT

relating to an exemption from the franchise tax for corporations 
engaged primarily in biotechnology research and development.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 171, Tax Code, is amended 
by adding Section 171.088 to read as follows:
	Sec. 171.088.  EXEMPTION--BIOTECHNOLOGY CORPORATIONS.  (a)  
In this section, "biotechnology research and development" means an 
activity described in category 541710 of the 2002 North American 
Industry Classification System.
	(b)  A corporation engaged primarily in biotechnology 
research and development is exempted from the franchise tax.
	SECTION 2.  (a)  This Act takes effect January 1, 2004.                        
	(b)  The change in law made by this Act does not affect taxes 
imposed before the effective date of this Act, and the law in effect 
before the effective date of this Act is continued in effect for the 
purposes of the liability for and collection of those taxes.