79R7594 CBH-D
By: McCall H.B. No. 3282
A BILL TO BE ENTITLED
AN ACT
relating to a tax credit for corporations that donate money or art
to art museums, galleries, or collections 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 DONATIONS RELATING TO ART
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 money or
works of art to an art museum, gallery, or collection that is open
to the public.
Sec. 171.943. AMOUNT; LIMITATIONS. (a) The amount of the
credit is equal to the total amount of money donated during the
privilege period and the appraised value of each work of art donated
during that 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. This Act applies only to a tax report originally
due on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2006.