SECTION 1. Chapter 171, Tax
Code, is amended by adding Subchapter [__] to read as follows:
SUBCHAPTER [__]. CREDIT FOR
REHABILITATION OF A HISTORIC STRUCTURE
Sec. 171.[__]. DEFINITIONS.
In this subchapter:
(1) "Commission"
means the Texas Historical Commission.
(2) "Eligible costs and
expenses" means qualified rehabilitation expenditures as defined in Section 47(c)(2)(A) of the Internal Revenue
Code of 1986, as amended, except that
"substantially rehabilitated" shall mean that the qualified
rehabilitation expenditures must exceed five thousand dollars.
Sec.
171.[__]. CREDIT.
(a)
There shall be allowed a credit against the tax imposed under this Chapter
171, Franchise Tax, in an amount equal to twenty-five percent (25%) of the
eligible costs and expenses incurred during the rehabilitation of a
historic structure.
(b)
The credit is earned by the entity that owns the historic structure in the
year in which the property attributable to the eligible costs and expenses
is placed in service.
(c)
In order to qualify for the credit, the historic structure must be listed
on the National Register of Historic Places or be certified by the
commission as contributing to the historical significance of the census
tract or the state.
Sec. 171.[__]. CERTIFICATION
(a) Prior to any credit being
claimed or assigned, the commission shall
have issued a tax credit certificate providing for the amount of eligible
costs and expenses incurred during the rehabilitation of a historic
structure.
(b)
In order to issue a tax credit certificate, the commission shall, at a
minimum, be provided with the following:
(1) an audited cost report
issued by a public accountant licensed in
this state itemizing and confirming the
amounts of eligible costs and expenses incurred during the rehabilitation
of the historic structure; and
(2) evidence that the
historic structure has been placed into service.
(c)
In issuing the tax credit certificate, the commission may rely, without
independent investigation, upon the audited cost report.
Sec.
171.[__]. LIMITATIONS; CARRYFORWARD.
(a) The total credit claimed
under this subchapter for a report, including the amount of any
carryforward credit under Section 171.[__](b),
may not exceed the franchise tax due after any other applicable credits.
(b) If total credit exceeds the limitation under Section 171.[__](a), such excess credit may
be carried forward for not more than five consecutive reports.
Sec.
171.[__]. ASSIGNMENT; ALLOCATION.
(a)
Any entity earning credits, as well as any subsequent assignees of such
credits, shall be permitted to sell or assign all or any portion of such
credit, and shall not be required to claim such credits, subject to the
following conditions:
(1)
A sale or assignment may involve one or more transferees and may take place
on one or more dates.
(2)
The credits may only be sold or assigned three times.
(3)
The sale or assignment of the credit does not extend the carryforward
period of the credit.
(4)
Assignors and assignees shall submit to the commission a written
notification of any sale or assignment of credits within thirty days after
the sale or assignment of such credits, which notification shall include:
the date of the sale or assignment; the amount of credits sold or assigned;
the name and federal tax identification number of the assignor and each
assignee; the assignor's credit balance with respect to a particular
historic structure prior to the sale or assignment, and the assignor's
remaining credit balance with respect to a particular historic structure
after the sale or assignment.
(b)
Credits earned by, or assigned to, a partnership, limited liability
company, S-corporation, or other similar pass-through entity shall be
allocated among some or all of the partners, members, or shareholders in
any manner agreed to by such partners, members, or shareholders which can
be without regard to such partners', members', or shareholders' membership
or ownership interest.
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SECTION 1. Chapter 171, Tax
Code, is amended by adding Subchapter S to read as follows:
SUBCHAPTER S. TAX CREDIT
FOR CERTIFIED REHABILITATION OF CERTIFIED HISTORIC STRUCTURES
Sec. 171.901.
DEFINITIONS. In this subchapter:
(1) "Certified historic structure" means a property in
this state that is:
(A) listed individually in the National Register of Historic Places;
(B) designated as a Recorded Texas Historic Landmark under Section
442.006, Government Code, or as a state archeological landmark under
Chapter 191, Natural Resources Code; or
(C) certified by the commission as contributing to the historic
significance of:
(i) a historic district listed in the National Register of Historic
Places; or
(ii) a local district certified by the United States Department of
the Interior in accordance with 36 C.F.R. Section 67.9.
(2) "Certified rehabilitation" means the rehabilitation of
a certified historic structure that the commission has certified as meeting
the United States secretary of the interior's Standards for Rehabilitation
as defined in 36 C.F.R. Section 67.7.
(3)
"Commission" means the Texas Historical Commission.
(4) "Eligible costs
and expenses" means qualified rehabilitation expenditures as defined
by Section 47(c)(2), Internal Revenue
Code.
Sec. 171.902. ELIGIBILITY FOR CREDIT. An entity is eligible to
apply for a credit in the amount and under the conditions and limitations
provided by this subchapter against the tax imposed under this chapter.
Sec. 171.903. QUALIFICATION. An entity is eligible for a credit for
eligible costs and expenses incurred in the certified rehabilitation of a
certified historic structure as provided by this subchapter if:
(1) the rehabilitated certified historic structure is placed in
service on or after September 1, 2013;
(2) the entity has an ownership interest in the certified historic
structure in the year during which the structure is placed in service after
the rehabilitation; and
(3) the total amount of the eligible costs and expenses incurred
exceeds $5,000.
Sec. 171.904.
CERTIFICATION OF ELIGIBILITY. (a) Before claiming, selling, or assigning a credit under this subchapter, the entity that incurred the eligible costs and
expenses in the rehabilitation of a certified historic structure must
request from the commission a certificate of eligibility on which the
commission certifies that the work performed meets the definition of a
certified rehabilitation. The entity must include with the entity's
request:
(1) information on the property that is sufficient for the
commission to determine whether the property meets the definition of a
certified historic structure; and
(2) information on the rehabilitation, and photographs before and
after work is performed, sufficient for the commission to determine whether
the rehabilitation meets the United States secretary of the interior's
Standards for Rehabilitation as defined in 36 C.F.R. Section 67.7.
(b) The commission shall issue a certificate of eligibility to an
entity that has incurred eligible costs and expenses as provided by this
subchapter. The certificate must:
(1) confirm that:
(A) the property to which the eligible costs and expenses relate is
a certified historic structure; and
(B) the rehabilitation qualifies as a certified rehabilitation; and
(2) specify the date the certified historic structure was first
placed in service after the rehabilitation.
(c) The entity must forward the certificate of eligibility and the
following documentation to the comptroller to claim the tax credit:
(1) an audited cost
report issued by a certified public
accountant, as defined by Section 901.002,
Occupations Code, that itemizes the eligible costs and expenses
incurred in the certified
rehabilitation of the certified
historic structure by the entity;
(2) the date the certified historic structure was first placed in
service after the rehabilitation and evidence of that placement in
service; and
(3) an attestation of the total eligible costs and expenses incurred
by the entity on the rehabilitation of the certified historic structure.
(d) For purposes of approving the tax credit under Subsection (c),
the comptroller may rely on the audited cost report provided by the entity
that requested the tax credit.
(e) An entity that sells or assigns a credit under this subchapter
to another entity shall provide a copy of the certificate of eligibility,
together with the audited cost report, to the purchaser or assignee.
Sec. 171.905. AMOUNT OF CREDIT; LIMITATIONS. (a) The total amount
of the credit under this subchapter with respect to the rehabilitation of a
single certified historic structure that may be claimed may not exceed 25
percent of the total eligible costs and expenses incurred in the certified
rehabilitation of the certified historic structure.
(b) The total credit
claimed for a report, including the amount of any carryforward under Section 171.906, may not exceed the amount
of franchise tax due for the report
after any other applicable tax credits.
(c) Eligible costs and expenses may only be counted once in
determining the amount of the tax credit available, and more than one
entity may not claim a credit for the same eligible costs and expenses.
Sec. 171.906.
CARRYFORWARD. (a) If an entity is eligible
for a credit that exceeds the limitation under Section 171.905(b), the entity may carry the unused credit forward for not more than five consecutive
reports.
(b) A carryforward is considered the remaining portion of a credit
that cannot be claimed in the current year because of the limitation under
Section 171.905(b).
Sec. 171.907. APPLICATION FOR CREDIT. (a) An entity must apply for
a credit under this subchapter on or with the report for the period for
which the credit is claimed.
(b) An entity shall file with any report on which the credit is
claimed a copy of the certificate of eligibility issued by the commission
under Section 171.904 and any other information required by the comptroller
to sufficiently demonstrate that the entity is eligible for the credit.
(c) The burden of establishing eligibility for and the value of the
credit is on the entity.
Sec. 171.908. SALE OR ASSIGNMENT OF CREDIT. (a) An entity that
incurs eligible costs and expenses may sell or assign all or part of the
credit that may be claimed for those costs and expenses to one or more
entities, and any entity to which all or part of the credit is sold or
assigned may sell or assign all or part of the credit to another entity.
There is no limit on the total number of transactions for the sale or
assignment of all or part of the total credit authorized under this subchapter,
however, collectively all transfers are subject to the maximum total limits
provided by Section 171.905.
(b) An entity that sells or assigns a credit under this section and
the entity to which the credit is sold or assigned shall jointly submit written
notice of the sale or assignment to the comptroller on a form promulgated
by the comptroller not later than the 30th day after the date of the sale
or assignment. The notice must include:
(1) the date of the sale or assignment;
(2) the amount of the credit sold or assigned;
(3) the names and federal tax identification numbers of the entity
that sold or assigned the credit or part of the credit and the entity to
which the credit or part of the credit was sold or assigned; and
(4) the amount of the credit owned by the selling or assigning
entity before the sale or assignment, and the amount the selling or
assigning entity retained, if any, after the sale or assignment.
(c) The sale or assignment of a credit in accordance with this
section does not extend the period for which a credit may be carried
forward and does not increase the total amount of the credit that may be
claimed. After an entity claims a credit for eligible costs and expenses,
another entity may not use the same costs and expenses as the basis for
claiming a credit.
(d) Notwithstanding the requirements of this subchapter, a credit
earned or purchased by, or assigned to, a partnership, limited liability
company, S corporation, or other pass-through entity may be allocated to
the partners, members, or shareholders of that entity and claimed under
this subchapter in accordance with the provisions of any agreement among
the partners, members, or shareholders and without regard to the ownership
interest of the partners, members, or shareholders in the rehabilitated
certified historic structure, provided that the entity that claims the
credit must be subject to the tax imposed under this chapter.
Sec. 171.909. RULES. The commission and the comptroller shall adopt
rules necessary to implement this subchapter.
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SECTION 2. Subtitle B, Title
3, Insurance Code, is amended by adding Chapter [__] to read as follows:
SUBCHAPTER [__]. CREDIT FOR
REHABILITATION OF A HISTORIC STRUCTURE
Sec. [__].[__].
DEFINITIONS. In this subchapter:
(1) "Commission"
means the Texas Historical Commission.
(2) "Eligible costs and
expenses" means qualified rehabilitation expenditures as defined in Section 47(c)(2)(A) of the Internal Revenue
Code of 1986, as amended, except that
"substantially rehabilitated" shall mean that the qualified
rehabilitation expenditures must exceed five thousand dollars.
(3) "State premium tax
liability" means any liability incurred by an entity under Chapters 221 through 226.
Sec.
[__].[__]. CREDIT.
(a)
There shall be allowed a credit against state premium tax liability in an
amount equal to twenty-five percent (25%) of the eligible costs and
expenses incurred during the rehabilitation of a historic structure.
(b)
The credit is earned by the entity that owns the historic structure in the
year in which the property attributable to the eligible costs and expenses
is placed in service.
(c)
In order to qualify for the credit, the historic structure must be listed
on the National Register of Historic Places or be certified by the
commission as contributing to the historical significance of the census
tract or the state.
Sec. [__].[__].
CERTIFICATION
(a) Prior to any credit
being claimed or assigned, the commission
shall have issued a tax credit certificate providing for the amount of
eligible costs and expenses incurred during the rehabilitation of a
historic structure.
(b)
In order to issue a tax credit certificate, the commission shall, at a
minimum, be provided with the following:
(1) an audited cost report
issued by a public accountant licensed in
this state itemizing and confirming the amounts of eligible costs
and expenses incurred during the rehabilitation of the historic structure;
and
(2) evidence that the
historic structure has been placed into service.
(c)
In issuing the tax credit certificate, the commission may rely, without
independent investigation, upon the audited cost report.
Sec.
[__].[__]. LIMITATIONS; CARRYFORWARD.
(a)
The total credit claimed under this subchapter for a report, including the
amount of any carryforward credit under Section [__].[__](b), may not
exceed the state premium tax liability due after any other applicable
credits.
(b) If total credit exceeds the limitation under Section [__].[__](a), such excess credit may
be carried forward for not more than five consecutive reports.
Sec.
[__].[__]. ASSIGNMENT; ALLOCATION.
(a)
Any entity earning credits, as well as any subsequent assignees of such
credits, shall be permitted to sell or assign all or any portion of such
credit, and shall not be required to claim such credits, subject to the
following conditions:
(1)
A sale or assignment may involve one or more transferees and may take place
on one or more dates.
(2)
The credits may only be sold or assigned three times.
(3)
The sale or assignment of the credit does not extend the carryforward
period of the credit.
(4)
Assignors and assignees shall submit to the commission a written
notification of any sale or assignment of credits within thirty days after
the sale or assignment of such credits, which notification shall include:
the date of the sale or assignment; the amount of credits sold or assigned;
the name and federal tax identification number of the assignor and each
assignee; the assignor's credit balance with respect to a particular
historic structure prior to the sale or assignment, and the assignor's
remaining credit balance with respect to a particular historic structure
after the sale or assignment.
(b)
Credits earned by, or assigned to, a partnership, limited liability
company, S-corporation, or other similar pass-through entity shall be
allocated among some or all of the partners, members, or shareholders in
any manner agreed to by such partners, members, or shareholders which can
be without regard to such partners', members', or shareholders' membership
or ownership interest.
Sec. [__].[__]. RETALIATORY
TAX. Any entity claiming a credit against state premium tax liability is
not required to pay any additional retaliatory tax levied under Chapter 281
as a result of claiming the credit.
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SECTION 2. Subtitle B, Title
3, Insurance Code, is amended by adding Chapter 232 to read as follows:
CHAPTER 232. PREMIUM TAX
CREDIT FOR CERTIFIED REHABILITATION OF CERTIFIED HISTORIC STRUCTURES
Sec. 232.001.
DEFINITIONS. In this chapter:
(1) "Certified historic structure" means a property in
this state that is:
(A) listed individually in the National Register of Historic Places;
(B) designated as a Recorded Texas Historic Landmark under Section
442.006, Government Code, or as a state archeological landmark under
Chapter 191, Natural Resources Code; or
(C) certified by the commission as contributing to the historic
significance of:
(i) a historic district listed in the National Register of Historic
Places; or
(ii) a local district certified by the United States Department of
the Interior in accordance with 36 C.F.R. Section 67.9.
(2) "Certified rehabilitation" means the rehabilitation of
a certified historic structure that the commission has certified as meeting
the United States secretary of the interior's Standards for Rehabilitation
as defined in 36 C.F.R. Section 67.7.
(3)
"Commission" means the Texas Historical Commission.
(4) "Eligible costs
and expenses" means qualified rehabilitation expenditures as defined
by Section 47(c)(2), Internal Revenue
Code of 1986.
(5) "State premium
tax liability" means any liability incurred by an entity under Chapter 221, 222, 223, or 224.
Sec. 232.002. ELIGIBILITY FOR CREDIT. An entity is eligible to
apply for a credit against state premium tax liability on a report in the
amount and under the conditions and limitations provided by this chapter.
Sec. 232.003. QUALIFICATION. An entity is eligible to apply for a
credit for eligible costs and expenses incurred in the certified
rehabilitation of a certified historic structure as provided by this
chapter if:
(1) the rehabilitated certified historic structure is placed in
service on or after September 1, 2013;
(2) the entity has an ownership interest in the certified historic
structure in the year during which the structure is placed in service after
the rehabilitation; and
(3) the total amount of the eligible costs and expenses incurred exceeds
$5,000.
Sec. 232.004.
CERTIFICATION OF ELIGIBILITY. (a) Before claiming, selling, or assigning a credit under this chapter, the entity that incurred the eligible costs and
expenses in the rehabilitation of a certified historic structure must request
from the commission a certificate of eligibility on which the commission
certifies that the work performed meets the definition of a certified
rehabilitation. The entity must include with the entity's request:
(1) information on the property that is sufficient for the
commission to determine whether the property meets the definition of a
certified historic structure; and
(2) information on the rehabilitation, and photographs before and
after work is performed, sufficient for the commission to determine whether
the rehabilitation meets the United States secretary of the interior's
Standards for Rehabilitation as defined in 36 C.F.R. Section 67.7.
(b) The commission shall issue a certificate of eligibility to an
entity that has incurred eligible costs and expenses as provided by this
subchapter. The certificate must:
(1) confirm that:
(A) the property to which the eligible costs and expenses relate is
a certified historic structure; and
(B) the rehabilitation qualifies as a certified rehabilitation; and
(2) specify the date the certified historic structure was first
placed in service after the rehabilitation.
(c) The entity must forward the certificate of eligibility and the
following documentation to the comptroller to claim the tax credit:
(1) an audited cost
report issued by a certified public
accountant, as defined by Section 901.002,
Occupations Code, that itemizes the eligible costs and expenses
incurred in the certified
rehabilitation of the certified
historic structure by the entity;
(2) the date the certified historic structure was first placed in
service after the rehabilitation and evidence of that placement in
service; and
(3) an attestation of the total eligible costs and expenses incurred
by the entity on the rehabilitation of the certified historic structure.
(d) For purposes of approving the tax credit under Subsection (c),
the comptroller may rely on the audited cost report provided by the entity
that requested the tax credit.
(e) An entity that sells or assigns a credit under this chapter to
another entity shall provide a copy of the certificate of eligibility,
together with the audited cost report, to the purchaser or assignee.
Sec. 232.005. AMOUNT OF CREDIT; LIMITATIONS. (a) The total amount
of the credit under this chapter with respect to the rehabilitation of a
single certified historic structure that may be claimed may not exceed 25
percent of the total eligible costs and expenses incurred in the certified
rehabilitation of the certified historic structure.
(b) The total credit that may be applied for in a report, including
the amount of any carryforward under Section 232.006, may not exceed the
amount of state premium tax liability for the report after any other
applicable tax credits.
(c) Eligible costs and expenses may only be counted once in
determining the amount of the tax credit available, and more than one
entity may not claim a credit for the same eligible costs and expenses.
Sec. 232.006.
CARRYFORWARD. (a) If an entity is eligible
for a credit that exceeds the limitation under Section 232.005(b), the entity may carry the unused credit forward for not more than
five consecutive reports.
(b) A carryforward is considered the remaining portion of a credit
that cannot be claimed in the current year because of the limitation under
Section 232.005(b).
Sec. 232.007. APPLICATION FOR CREDIT. (a) An entity must apply for
a credit under this chapter on or with the report for the period for which
the credit is claimed.
(b) An entity shall file with any report on which the credit is
claimed a copy of the certificate of eligibility issued by the commission
under Section 232.004 and any other information required by the comptroller
to sufficiently demonstrate that the entity is eligible for the credit.
(c) The burden of establishing entitlement to and the value of the
credit is on the entity.
Sec. 232.008. SALE OR ASSIGNMENT OF CREDIT. (a) An entity that
incurs eligible costs and expenses may sell or assign all or part of the
credit that may be claimed for those costs and expenses to one or more
entities, and any entity to which all or part of the credit is sold or
assigned may sell or assign all or part of the credit to another entity.
There is no limit on the total number of transactions for the sale or
assignment of all or part of the total credit authorized under this
chapter, however, collectively all transfers are subject to the maximum
total limits provided by Section 232.005.
(b) An entity that sells or assigns a credit under this section and
the entity to which the credit is sold or assigned shall jointly submit
written notice of the sale or assignment to the comptroller on a form
promulgated by the comptroller not later than the 30th day after the date
of the sale or assignment. The notice must include:
(1) the date of the sale or assignment;
(2) the amount of the credit sold or assigned;
(3) the names and federal tax identification numbers of the entity
that sold or assigned the credit or part of the credit and the entity to
which the credit or part of the credit was sold or assigned; and
(4) the amount of the credit owned by the selling or assigning
entity before the sale or assignment, and the amount the selling or
assigning entity retained, if any, after the sale or assignment.
(c) The sale or assignment of a credit in accordance with this
section does not extend the period for which a credit may be carried
forward and does not increase the total amount of the credit that may be
claimed. After an entity claims a credit for eligible costs and expenses,
another entity may not use the same costs and expenses as the basis for
claiming a credit.
(d) Notwithstanding the requirements of this chapter, a credit
earned or purchased by, or assigned to, a partnership, limited liability
company, S corporation, or other pass-through entity may be allocated to
the partners, members, or shareholders of that entity and claimed under
this chapter in accordance with the provisions of any agreement among the
partners, members, or shareholders and without regard to the ownership
interest of the partners, members, or shareholders in the rehabilitated
certified historic structure, provided that the entity that claims the
credit must be subject to the tax imposed under Chapter 221, 222, 223, or
224.
Sec. 232.009. RETALIATORY
TAX. An entity that claims a credit under this chapter is not required to
pay any additional retaliatory tax levied under Chapter 281 as a result of
the credit.
Sec. 232.010. RULES. The commission and the comptroller shall adopt
rules necessary to implement this chapter.
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