| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to franchise tax incentives for recycling. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 171.1011(p), Tax Code, is amended by |
|
|
adding Subdivisions (4-c) and (4-d) to read as follows: |
|
|
(4-c) "Recycled product" has the meaning assigned by |
|
|
Section 361.421, Health and Safety Code. |
|
|
(4-d) "Solid waste" has the meaning assigned by |
|
|
Section 361.003, Health and Safety Code. |
|
|
SECTION 2. Section 171.1011, Tax Code, is amended by adding |
|
|
Subsection (x) to read as follows: |
|
|
(x) A taxable entity may exclude, to the extent included |
|
|
under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), all revenue |
|
|
received from sales of recycled products manufactured by the |
|
|
taxable entity. A taxable entity is entitled to exclude revenue |
|
|
received from the sale of recycled products under this subsection |
|
|
only if: |
|
|
(1) the taxable entity is not primarily engaged in the |
|
|
business of manufacturing and selling recycled products; and |
|
|
(2) the taxable entity demonstrates to the comptroller |
|
|
that the recycled products were manufactured using waste that the |
|
|
taxable entity would otherwise have disposed of as solid waste. |
|
|
SECTION 3. Subchapter C, Chapter 171, Tax Code, is amended |
|
|
by adding Section 171.1045 to read as follows: |
|
|
Sec. 171.1045. GROSS RECEIPTS: DEDUCTION FOR RECYCLED |
|
|
PRODUCTS. (a) In this section: |
|
|
(1) "Recycled product" has the meaning assigned by |
|
|
Section 361.421, Health and Safety Code. |
|
|
(2) "Solid waste" has the meaning assigned by Section |
|
|
361.003, Health and Safety Code. |
|
|
(b) A taxable entity may exclude from its receipts |
|
|
includable under Sections 171.103(a)(1) and 171.105(a)(1) the |
|
|
amount of the taxable entity's receipts from sales of recycled |
|
|
products manufactured by the taxable entity. A taxable entity that |
|
|
chooses to exclude receipts as provided by this section shall |
|
|
exclude those receipts from each computation of gross receipts |
|
|
required by this chapter. |
|
|
(c) A taxable entity is entitled to exclude receipts under |
|
|
this section only if: |
|
|
(1) the taxable entity is not primarily engaged in the |
|
|
business of manufacturing and selling recycled products; and |
|
|
(2) the taxable entity demonstrates to the comptroller |
|
|
that the recycled products were manufactured using waste that the |
|
|
taxable entity would otherwise have disposed of as solid waste. |
|
|
SECTION 4. Chapter 171, Tax Code, is amended by adding |
|
|
Subchapter W to read as follows: |
|
|
SUBCHAPTER W. TAX CREDIT FOR CAPITAL EXPENDITURES FOR CERTAIN |
|
|
RECYCLING EQUIPMENT |
|
|
Sec. 171.951. DEFINITIONS. In this subchapter: |
|
|
(1) "Recycling equipment" means equipment necessary |
|
|
to assist a taxable entity in recycling waste and used |
|
|
predominantly for that purpose. |
|
|
(2) "Solid waste" has the meaning assigned by Section |
|
|
361.003, Health and Safety Code. |
|
|
Sec. 171.952. ELIGIBILITY. A taxable entity is eligible for |
|
|
a credit against the tax imposed under this chapter in the amount |
|
|
and under the conditions and limitations provided by this |
|
|
subchapter. |
|
|
Sec. 171.953. CREDIT FOR CAPITAL EXPENDITURE FOR RECYCLING |
|
|
EQUIPMENT. (a) A taxable entity may claim a credit under this |
|
|
subchapter only for a capital expenditure made toward purchasing |
|
|
recycling equipment. |
|
|
(b) A taxable entity is entitled to a credit under this |
|
|
section only if: |
|
|
(1) the taxable entity is not primarily engaged in the |
|
|
business of manufacturing and selling recycled products; and |
|
|
(2) the taxable entity demonstrates to the comptroller |
|
|
that the recycling equipment was used to recycle waste that the |
|
|
taxable entity would otherwise have disposed of as solid waste. |
|
|
Sec. 171.954. AMOUNTS; LIMITATIONS. (a) The amount of the |
|
|
credit is equal to the lesser of: |
|
|
(1) the total amount of the capital expenditure made |
|
|
during the reporting period; or |
|
|
(2) $50,000. |
|
|
(b) The taxable entity may claim the credit only in five |
|
|
equal installments of one-fifth the credit amount over five |
|
|
consecutive reports beginning with the report based on the period |
|
|
during which the capital expenditure was made. |
|
|
Sec. 171.955. APPLICATION FOR CREDIT. (a) A taxable entity |
|
|
must apply for a credit under this subchapter on or with the tax |
|
|
report for the period for which the credit is claimed. |
|
|
(b) The comptroller shall adopt a form for the application |
|
|
for the credit. A taxable entity must use this form in applying for |
|
|
the credit. |
|
|
Sec. 171.956. ASSIGNMENT PROHIBITED. A taxable entity may |
|
|
not convey, assign, or transfer the credit allowed under this |
|
|
subchapter to another entity unless all of the assets of the taxable |
|
|
entity are conveyed, assigned, or transferred in the same |
|
|
transaction. |
|
|
SECTION 5. (a) This Act applies only to a report |
|
|
originally due on or after the effective date of this Act. |
|
|
(b) A taxable entity may claim a credit under Subchapter W, |
|
|
Chapter 171, Tax Code, as added by this Act, only for an expenditure |
|
|
made on or after the effective date of this Act. |
|
|
SECTION 6. This Act takes effect January 1, 2010. |