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A BILL TO BE ENTITLED
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AN ACT
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relating to a sales and use tax exemption for certain property and |
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services used in research and development activities by a |
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qualifying biotechnology start-up. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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by adding Section 151.3183 to read as follows: |
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Sec. 151.3183. CERTAIN PROPERTY AND SERVICES USED IN |
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RESEARCH AND DEVELOPMENT ACTIVITIES BY A QUALIFYING BIOTECHNOLOGY |
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START-UP. (a) In this section: |
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(1) "Internal Revenue Code" means the Internal Revenue |
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Code of 1986 in effect on December 31, 2011, excluding any changes |
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made by federal law after that date, but including any regulations |
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adopted under that code applicable to the tax year to which the |
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provisions of the code in effect on that date applied. |
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(2) "Qualified research" and "qualified service" have |
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the meanings assigned by Section 41, Internal Revenue Code. |
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(3) "Qualifying biotechnology start-up" means a |
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start-up business: |
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(A) located in this state on or after September |
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1, 2013; and |
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(B) engaged primarily in the study of biological |
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systems to develop products or processes for a specific use. |
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(b) The sale, storage, use, or other consumption of tangible |
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personal property directly used or consumed in qualified research |
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or of qualified services is exempted from the taxes imposed by this |
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chapter if the property or services are sold, leased, or rented to, |
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or stored, used, or consumed by, a qualifying biotechnology |
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start-up engaged in qualified research. |
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SECTION 2. Section 151.3183, Tax Code, as added by this Act, |
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does not affect tax liability accruing before the effective date of |
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this Act. That liability continues in effect as if this Act had not |
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been enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect October 1, 2013. |