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A BILL TO BE ENTITLED
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AN ACT
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relating to a tax credit for donations of certain art to art museums |
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in this state that are open to the public. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter K to read as follows: |
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SUBCHAPTER K. TAX CREDIT FOR CERTAIN ART DONATIONS |
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Sec. 171.521. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions and |
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limitations provided by this subchapter against the tax imposed |
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under this chapter. |
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Sec. 171.522. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity donates to |
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an art museum in this state that is open to the public a work of art |
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that: |
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(1) the taxable entity has owned for at least five |
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years; and |
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(2) the museum intends to include in the museum's |
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permanent collection. |
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Sec. 171.523. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit is equal to the total appraised value of each work of art |
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described by Section 171.522 that is donated during the privilege |
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period. |
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(b) The credit claimed for each privilege period may not |
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exceed the amount of franchise tax due, before any other applicable |
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tax credits, for the privilege period. |
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(c) A taxable entity may claim a credit under this |
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subchapter for a donation made during an accounting period only |
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against the tax owed for the corresponding privilege period. |
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(d) A taxable entity may not carry over a credit amount for a |
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donation made during a privilege period to a subsequent privilege |
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period. |
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(e) A taxable entity may not convey, assign, or transfer a |
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credit under this subchapter to another entity unless all of the |
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assets of the taxable entity are conveyed, assigned, or transferred |
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in the same transaction. |
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Sec. 171.524. APPLICATION FOR CREDIT. A taxable entity |
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must apply for a credit under this subchapter on or with the tax |
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report for the period for which the credit is claimed. |
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Sec. 171.525. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |