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A BILL TO BE ENTITLED
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AN ACT
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relating to exempting the sale of certain property used for |
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research and development from the sales tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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by adding Section 151.3182 to read as follows: |
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Sec. 151.3182. EQUIPMENT USED IN RESEARCH OR DEVELOPMENT. |
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(a) In this section: |
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(1) "Manufacturing" has the meaning assigned that term |
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by Section 151.318. |
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(2) "Telecommunications services" has the meaning |
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assigned that term by Section 151.0103. |
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(b) Except as provided by Subsection (d), the sale, use, or |
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other consumption of tangible personal property is exempted from |
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the taxes imposed by this chapter and a taxpayer may claim a credit |
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or refund under Subsection (e) if the tangible personal property is |
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used directly in the research or development of inventions, |
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products, processes, or technology by a person that is primarily |
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engaged in: |
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(1) the manufacturing, processing, or fabrication of |
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tangible personal property for ultimate sale; |
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(2) the provision of telecommunications services; or |
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(3) the performance of scientific or technical |
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services for a person primarily engaged in an activity described by |
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Subdivision (1) or (2). |
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(c) This section applies to tangible personal property used |
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or consumed in research or development by persons primarily engaged |
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in manufacturing or the provision of telecommunications services |
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regardless of whether the tangible personal property: |
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(1) is used or consumed in the actual manufacturing, |
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processing, or fabrication of tangible personal property for |
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ultimate sale; or |
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(2) is directly used in the provision of |
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telecommunications services. |
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(d) This section does not apply to: |
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(1) office equipment or supplies; or |
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(2) equipment or supplies used in sales or |
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distribution activities or in transportation activities. |
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(e) A taxpayer who pays tax on tangible personal property |
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exempted under this section is entitled to either a credit of the |
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amount paid against taxes owed under this chapter or a refund of the |
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amount paid. A taxpayer who elects a credit must claim the credit |
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on the return for a period that ends not later than the first |
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anniversary of the date on which the tax on the item was paid. A |
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taxpayer who elects a refund must apply to the comptroller for the |
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refund before or during the calendar year following the year in |
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which the tax on the item was paid. |
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SECTION 2. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 3. This Act takes effect October 1, 2009. |