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.