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A BILL TO BE ENTITLED
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AN ACT
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relating to a tax credit for eligible costs and expenses incurred |
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during the rehabilitation of a historic structure located in a |
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severely damaged or flooded census tract: |
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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 [__] |
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to read as follows: |
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SUBCHAPTER [__]. CREDIT FOR REHABILITATION OF A HISTORIC STRUCTURE |
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Sec. 171.[__]. DEFINITIONS. In this subchapter: |
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(1) "Commission" means the Texas Historical |
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Commission. |
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(2) "Eligible costs and expenses" means qualified |
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rehabilitation expenditures as defined in Section 47(c)(2)(A) of |
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the Internal Revenue Code of 1986, as amended, except that |
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"substantially rehabilitated" shall mean that the qualified |
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rehabilitation expenditures must exceed five thousand dollars. |
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Sec. 171.[__]. CREDIT. |
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(a) There shall be allowed a credit against the tax imposed |
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under this Chapter 171, Franchise Tax, in an amount equal to |
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twenty-five percent (25%) of the eligible costs and expenses |
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incurred during the rehabilitation of a historic structure. |
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(b) The credit is earned by the entity that owns the |
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historic structure in the year in which the property attributable |
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to the eligible costs and expenses is placed in service. |
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(c) In order to qualify for the credit, the historic |
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structure must be listed on the National Register of Historic |
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Places or be certified by the commission as contributing to the |
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historical significance of the census tract or the state. |
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Sec. 171.[__]. CERTIFICATION |
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(a) Prior to any credit being claimed or assigned, the |
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commission shall have issued a tax credit certificate providing for |
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the amount of eligible costs and expenses incurred during the |
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rehabilitation of a historic structure. |
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(b) In order to issue a tax credit certificate, the |
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commission shall, at a minimum, be provided with the following: |
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(1) an audited cost report issued by a public |
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accountant licensed in this state itemizing and confirming the |
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amounts of eligible costs and expenses incurred during the |
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rehabilitation of the historic structure; and |
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(2) evidence that the historic structure has been |
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placed into service. |
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(c) In issuing the tax credit certificate, the commission |
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may rely, without independent investigation, upon the audited cost |
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report. |
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Sec. 171.[__]. LIMITATIONS; CARRYFORWARD. |
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(a) The total credit claimed under this subchapter for a |
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report, including the amount of any carryforward credit under |
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Section 171.[__](b), may not exceed the franchise tax due after any |
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other applicable credits. |
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(b) If total credit exceeds the limitation under Section |
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171.[__](a), such excess credit may be carried forward for not more |
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than five consecutive reports. |
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Sec. 171.[__]. ASSIGNMENT; ALLOCATION. |
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(a) Any entity earning credits, as well as any subsequent |
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assignees of such credits, shall be permitted to sell or assign all |
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or any portion of such credit, and shall not be required to claim |
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such credits, subject to the following conditions: |
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(1) A sale or assignment may involve one or more |
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transferees and may take place on one or more dates. |
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(2) The credits may only be sold or assigned three |
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times. |
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(3) The sale or assignment of the credit does not |
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extend the carryforward period of the credit. |
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(4) Assignors and assignees shall submit to the |
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commission a written notification of any sale or assignment of |
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credits within thirty days after the sale or assignment of such |
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credits, which notification shall include: the date of the sale or |
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assignment; the amount of credits sold or assigned; the name and |
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federal tax identification number of the assignor and each |
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assignee; the assignor's credit balance with respect to a |
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particular historic structure prior to the sale or assignment, and |
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the assignor's remaining credit balance with respect to a |
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particular historic structure after the sale or assignment. |
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(b) Credits earned by, or assigned to, a partnership, |
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limited liability company, S-corporation, or other similar |
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pass-through entity shall be allocated among some or all of the |
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partners, members, or shareholders in any manner agreed to by such |
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partners, members, or shareholders which can be without regard to |
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such partners', members', or shareholders' membership or ownership |
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interest. |
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SECTION 2. Subtitle B, Title 3, Insurance Code, is amended |
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by adding Chapter [__] to read as follows: |
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SUBCHAPTER [__]. CREDIT FOR REHABILITATION OF A HISTORIC STRUCTURE |
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Sec. [__].[__]. DEFINITIONS. In this subchapter: |
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|
(1) "Commission" means the Texas Historical |
|
|
Commission. |
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|
(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 |
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|
rehabilitation expenditures must exceed five thousand dollars. |
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(3) "State premium tax liability" means any liability |
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incurred by an entity under Chapters 221 through 226. |
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Sec. [__].[__]. CREDIT. |
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(a) There shall be allowed a credit against state premium |
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tax liability in an amount equal to twenty-five percent (25%) of the |
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eligible costs and expenses incurred during the rehabilitation of a |
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historic structure. |
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(b) The credit is earned by the entity that owns the |
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historic structure in the year in which the property attributable |
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|
to the eligible costs and expenses is placed in service. |
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|
(c) In order to qualify for the credit, the historic |
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|
structure must be listed on the National Register of Historic |
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|
Places or be certified by the commission as contributing to the |
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|
historical significance of the census tract or the state. |
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Sec. [__].[__]. CERTIFICATION |
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|
(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 |
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|
rehabilitation of a historic structure. |
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|
(b) In order to issue a tax credit certificate, the |
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|
commission shall, at a minimum, be provided with the following: |
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|
(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 |
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|
(2) evidence that the historic structure has been |
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|
placed into service. |
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|
(c) In issuing the tax credit certificate, the commission |
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|
may rely, without independent investigation, upon the audited cost |
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|
report. |
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Sec. [__].[__]. LIMITATIONS; CARRYFORWARD. |
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(a) The total credit claimed under this subchapter for a |
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|
report, including the amount of any carryforward credit under |
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Section [__].[__](b), may not exceed the state premium tax |
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liability due after any other applicable credits. |
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(b) If total credit exceeds the limitation under Section |
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[__].[__](a), such excess credit may be carried forward for not |
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more than five consecutive reports. |
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Sec. [__].[__]. ASSIGNMENT; ALLOCATION. |
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(a) Any entity earning credits, as well as any subsequent |
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|
assignees of such credits, shall be permitted to sell or assign all |
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or any portion of such credit, and shall not be required to claim |
|
|
such credits, subject to the following conditions: |
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|
(1) A sale or assignment may involve one or more |
|
|
transferees and may take place on one or more dates. |
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(2) The credits may only be sold or assigned three |
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times. |
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(3) The sale or assignment of the credit does not |
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extend the carryforward period of the credit. |
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(4) Assignors and assignees shall submit to the |
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commission a written notification of any sale or assignment of |
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credits within thirty days after the sale or assignment of such |
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credits, which notification shall include: the date of the sale or |
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assignment; the amount of credits sold or assigned; the name and |
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federal tax identification number of the assignor and each |
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assignee; the assignor's credit balance with respect to a |
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particular historic structure prior to the sale or assignment, and |
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the assignor's remaining credit balance with respect to a |
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particular historic structure after the sale or assignment. |
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(b) Credits earned by, or assigned to, a partnership, |
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|
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 |
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partners, members, or shareholders which can be without regard to |
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such partners', members', or shareholders' membership or ownership |
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|
interest. |
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Sec. [__].[__]. RETALIATORY TAX. Any entity claiming a |
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credit against state premium tax liability is not required to pay |
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any additional retaliatory tax levied under Chapter 281 as a result |
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of claiming the credit. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |