2009S0626-1 03/09/09
 
  By: West S.B. No. 1944
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for charitable contributions
  made toward certain low-income residential housing programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter S to read as follows:
  SUBCHAPTER S.  TAX CREDIT FOR CHARITABLE CONTRIBUTIONS MADE TOWARD
  CERTAIN LOW-INCOME RESIDENTIAL HOUSING PROGRAMS
         Sec. 171.851.  DEFINITIONS.  In this subchapter:
               (1)  "Certified nonprofit owner-builder housing
  program" means a housing program certified by the department under
  Subchapter FF, Chapter 2306, Government Code.
               (2)  "Department" means the Texas Department of Housing
  and Community Affairs.
         Sec. 171.852.  CREDIT.  A taxable entity that meets the
  eligibility requirements under this subchapter is entitled to a
  credit in the amount allowed by this subchapter against the tax
  imposed under this chapter.
         Sec. 171.853.  CHARITABLE CONTRIBUTIONS ELIGIBLE FOR CREDIT.  
  (a)  A taxable entity may claim a credit under this subchapter only
  for a charitable contribution made to a certified nonprofit
  owner-builder housing program toward costs incurred by the housing
  program to construct, remodel, improve, or rehabilitate
  residential housing.
         (b)  The department shall determine the eligible certified
  nonprofit owner-builder housing programs that incur costs toward
  which a taxable entity may make a qualifying charitable
  contribution.
         (c)  The comptroller, in cooperation with the department,
  shall adopt rules regarding the type of charitable contribution for
  which a taxable entity may claim a credit.
         Sec. 171.854.  AMOUNT; LIMITATIONS.  (a)  The amount of a
  qualifying charitable contribution made toward costs incurred at a
  single residential housing project for which a taxable entity may
  claim a credit may not exceed $25,000.
         (b)  The total amount of credit that a taxable entity may
  claim during a reporting period is equal to the lesser of:
               (1)  $200,000; or
               (2)  the amount of net franchise tax due, after
  applying any other credits, for the reporting period.
         (c)  A taxable entity may claim a credit under this
  subchapter for a qualifying charitable contribution during an
  accounting period only against the tax owed for the corresponding
  reporting period.
         Sec. 171.855.  CERTIFICATION.  A taxable entity is not
  eligible for a credit under this subchapter unless the taxable
  entity receives a written certification from the department that
  the charitable contribution is made toward costs incurred by an
  eligible certified nonprofit owner-builder housing program as
  determined by the department under Section 171.853(b).
         Sec. 171.856.  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.  The taxable
  entity must include a copy of the certification required by Section
  171.855 with the application.
         (b)  The comptroller shall adopt a form that a taxable entity
  must use in applying for the credit.
         Sec. 171.857.  ASSIGNMENT PROHIBITED.  A taxable entity may
  not convey, assign, or transfer a 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 2.  (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 the credit under Subchapter
  S, Chapter 171, Tax Code, as added by this Act, only for a
  qualifying charitable contribution made on or after the effective
  date of this Act.
         SECTION 3.  This Act takes effect January 1, 2010.