By: Geren (Senate Sponsor - Harris) H.B. No. 2383

(In the Senate - Received from the House May 16, 2011; May 16, 2011, read first time and referred to Committee on Finance; May 19, 2011, reported favorably by the following vote: Yeas 10, Nays 0; May 19, 2011, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to a study regarding the reenactment of the franchise tax credit or providing other incentives for certain research and development activities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter E, Chapter 171, Tax Code, is amended by adding Section 171.215 to read as follows:

Sec. 171.215. STUDY OF INCENTIVES FOR RESEARCH AND DEVELOPMENT ACTIVITIES. (a) The Legislative Budget Board shall conduct a study of:

(1) the costs and benefits to the state of reenacting the tax credit for research and development activities in effect under Subchapter O before the repeal of that subchapter by Chapter 1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006; and

(2) the types of research and development incentives available in other states.

(b) The Legislative Budget Board may seek the assistance of other state agencies in conducting the study, but the study must be completed using existing resources available to the Legislative Budget Board and any assisting agencies.

(c) The Legislative Budget Board shall report the results of the study to the legislature not later than January 1, 2013.

(d) This section expires September 1, 2013.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.

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