This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

                                                                                
79R14036 CBH-D


By:  McCall                                                       H.B. No. 3282

Substitute the following for H.B. No. 3282:                                   

By:  Keffer of Eastland                                       C.S.H.B. No. 3282



A BILL TO BE ENTITLED

AN ACT

relating to a tax credit for donations of certain art to art museums 
in this state that are open to the public.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 171, Tax Code, is amended by adding 
Subchapter X to read as follows:

SUBCHAPTER X.  TAX CREDIT FOR CERTAIN ART DONATIONS
	Sec. 171.941.  ENTITLEMENT TO CREDIT.  A corporation is 
entitled to a credit in the amount and under the conditions and 
limitations provided by this subchapter against the tax imposed 
under this chapter.
	Sec. 171.942.  QUALIFICATION.  A corporation qualifies for a 
credit under this subchapter if the corporation donates to an art 
museum in this state that is open to the public works of art that the 
museum intends to include in the museum's permanent collection.
	Sec. 171.943.  AMOUNT; LIMITATIONS.  (a)  The amount of the 
credit is equal to the total appraised value of each work of art 
described by Section 171.942 that is donated during the privilege 
period.
	(b)  The credit claimed for each privilege period may not 
exceed the amount of franchise tax due, before any other applicable 
tax credits, for the privilege period.
	(c)  A corporation may claim a credit under this subchapter 
for an expenditure made during an accounting period only against 
the tax owed for the corresponding privilege period.
	(d)  A corporation may not carry over an expenditure made 
during a privilege period to a subsequent privilege period.
	(e)  A corporation may not convey, assign, or transfer a 
credit under this subchapter to another entity unless all of the 
assets of the corporation are conveyed, assigned, or transferred in 
the same transaction.
	Sec. 171.944.  APPLICATION FOR CREDIT.  A corporation must 
apply for a credit under this subchapter on or with the tax report 
for the period for which the credit is claimed.
	Sec. 171.945.  RULES.  The comptroller shall adopt rules 
necessary to implement this subchapter.
	SECTION 2.  (a)  Chapter 251, Tax Code, as added by H.B. No. 
3, Acts of the 79th Legislature, Regular Session, 2005, is amended 
by adding Section 251.021 to read as follows:
	Sec. 251.021.  TAX CREDIT FOR CERTAIN ART DONATIONS.  (a)  A 
taxable business is entitled to a credit in the amount and under the 
conditions and limitations provided by this section against the tax 
imposed under this chapter.
	(b)  A taxable business qualifies for a credit under this 
section if the business, during a calendar quarter, donates to an 
art museum in this state that is open to the public works of art that 
the museum intends to include in the museum's permanent collection.
	(c)  The amount of the credit is equal to the total appraised 
value of each work of art described by Subsection (b) that is 
donated during that calendar quarter.  The credit claimed for each 
calendar quarter may not exceed the amount of tax due, before any 
other applicable tax credits, for the calendar quarter.
	(d)  A taxable business may not carry over an expenditure 
made during a calendar quarter to a subsequent calendar quarter.
	(e)  A taxable business may not convey, assign, or transfer a 
credit under this section to another entity unless all of the assets 
of the business are conveyed, assigned, or transferred in the same 
transaction.
	(f)  A taxable business must apply for a credit under this 
section on or with the tax report for the calendar quarter for which 
the credit is claimed.
	(g)  The comptroller shall adopt rules necessary to 
implement this section.
	(b)  This section takes effect only if H.B. No. 3 is enacted, 
becomes law, and adds Chapter 251, Tax Code.  If H.B. No. 3 is not 
enacted, does not become law, or does not add Chapter 251, Tax Code, 
this section has no effect.
	SECTION 3.  This Act applies only to a tax report originally 
due on or after the effective date of this Act.
	SECTION 4.  This Act takes effect January 1, 2006.