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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for charitable contributions |
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made toward certain low-income residential housing programs. |
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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 S to read as follows: |
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SUBCHAPTER S. TAX CREDIT FOR CHARITABLE CONTRIBUTIONS MADE TOWARD |
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CERTAIN LOW-INCOME RESIDENTIAL HOUSING PROGRAMS |
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Sec. 171.851. DEFINITIONS. In this subchapter: |
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(1) "Certified nonprofit owner-builder housing |
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program" means a housing program certified by the department under |
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Subchapter FF, Chapter 2306, Government Code. |
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(2) "Department" means the Texas Department of Housing |
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and Community Affairs. |
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Sec. 171.852. CREDIT. A taxable entity that meets the |
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eligibility requirements under this subchapter is entitled to a |
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credit in the amount allowed by this subchapter against the tax |
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imposed under this chapter. |
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Sec. 171.853. CHARITABLE CONTRIBUTIONS ELIGIBLE FOR CREDIT. |
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(a) A taxable entity may claim a credit under this subchapter only |
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for a charitable contribution made to a certified nonprofit |
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owner-builder housing program toward costs incurred by the housing |
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program to construct, remodel, improve, or rehabilitate |
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residential housing. |
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(b) The department shall determine the eligible certified |
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nonprofit owner-builder housing programs that incur costs toward |
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which a taxable entity may make a qualifying charitable |
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contribution. |
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(c) The comptroller, in cooperation with the department, |
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shall adopt rules regarding the type of charitable contribution for |
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which a taxable entity may claim a credit. |
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Sec. 171.854. AMOUNT; LIMITATIONS. (a) The amount of a |
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qualifying charitable contribution made toward costs incurred at a |
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single residential housing project for which a taxable entity may |
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claim a credit may not exceed $25,000. |
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(b) The total amount of credit that a taxable entity may |
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claim during a reporting period is equal to the lesser of: |
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(1) $200,000; or |
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(2) the amount of net franchise tax due, after |
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applying any other credits, for the reporting period. |
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(c) A taxable entity may claim a credit under this |
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subchapter for a qualifying charitable contribution during an |
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accounting period only against the tax owed for the corresponding |
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reporting period. |
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Sec. 171.855. CERTIFICATION. A taxable entity is not |
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eligible for a credit under this subchapter unless the taxable |
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entity receives a written certification from the department that |
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the charitable contribution is made toward costs incurred by an |
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eligible certified nonprofit owner-builder housing program as |
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determined by the department under Section 171.853(b). |
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Sec. 171.856. APPLICATION FOR CREDIT. (a) 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. The taxable |
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entity must include a copy of the certification required by Section |
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171.855 with the application. |
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(b) The comptroller shall adopt a form that a taxable entity |
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must use in applying for the credit. |
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Sec. 171.857. ASSIGNMENT PROHIBITED. A taxable entity may |
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not convey, assign, or transfer a credit allowed under this |
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subchapter to another entity unless all of the assets of the taxable |
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entity are conveyed, assigned, or transferred in the same |
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transaction. |
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SECTION 2. (a) This Act applies only to a report originally |
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due on or after the effective date of this Act. |
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(b) A taxable entity may claim the credit under Subchapter |
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S, Chapter 171, Tax Code, as added by this Act, only for a |
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qualifying charitable contribution made on or after the effective |
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date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |