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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.