BILL ANALYSIS
Senate Research Center S.B. 1917
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
As proposed, S.B. 1917 re-instates franchise tax credits for capital investment, job creation, research and development, and day care that were eliminated with the passage of the new margins tax during the 79th Legislature, 3rd Called Session, 2006. This bill also extends those tax credits to all taxable entities under the new margins tax.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 171, Tax Code, by adding Subchapter I-1, as follows:
SUBCHAPTER I-1. APPLICATION OF CREDITS TO NONCORPORATE TAXABLE ENTITIES
Sec. 171.451. APPLICATION OF CREDITS TO NONCORPORATE TAXABLE ENTITIES. Provides that a taxable entity that is not a corporation but that, because of its activities, would qualify for a specific credit under this chapter (Franchise Tax) if it were a corporation qualifies for the credit in the same manner and under the same conditions as a corporation.
SECTION 2. Amends Section 18(a), Chapter 1, Acts of the 79th Legislature, 3rd Called Session, 2006, to reinstate Subchapter N (Tax Credit for Establishing Day-Care Center or Purchasing Child-Care Services), Subchapter O (Tax Credit for Certain Research and Development Activities), Subchapter P (Tax Credits for Certain Job Creation Activities), and Subchapter Q (Tax Credits for Certain Capital Investments), Chapter 171, Tax Code, as scheduled to be repealed by Chapter 1, Acts of the 79th Legislature, 3rd Called Session, 2006, effective January 1, 2008. Makes conforming changes.
SECTION 3. Repealer: Sections 18(c), (d), (e), and (f) (relating to a claim made by a corporation on unused accrued credits before a certain date), Chapter 1, Acts of the 79th Legislature, 3rd Called Session, 2006.
SECTION 4. Makes application of this Act prospective.
SECTION 5. (a) Effective date, except as provided by Subsection (b) of this section: September 1, 2007.
(b) Effective date, SECTION 1: January 1, 2008