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A BILL TO BE ENTITLED
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AN ACT
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relating to the transferability of certain unused credits under the |
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Texas Franchise Tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (e) and (f), Section 18, Chapter 1 |
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(H.B. 3) Acts of the 79th Legislature, 3rd Called Session, 2006, are |
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amended to read as follows: |
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(e) A corporation that has any unused credits established |
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before the effective date of this Act under Subchapter P, Chapter |
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171, Tax Code, may claim those unused credits on or with the tax |
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report for the period in which the credit was established. However, |
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if the corporation was allowed to carry forward unused credits |
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under that subchapter, the corporation may continue to apply those |
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credits on or with each consecutive report until the earlier of the |
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date the credit would have expired under the terms of Subchapter P, |
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Chapter 171, Tax Code, had it continued in existence, or December |
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31, 2016, and the former law under which the corporation |
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established the credits is continued in effect for purposes of |
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determining the amount of the credits the corporation may claim and |
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the manner in which the corporation may claim the credit[.], |
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provided, however, that the corporation also may transfer the |
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unused credits by requesting a certificate of transferability of |
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credit from the Comptroller's Office for the unexpired amount of |
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credit not previously claimed. A transferability certificate so |
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issued may be transferred or sold by the recipient to another Texas |
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taxpayer. Transferors and sellers shall submit to the Comptroller's |
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Office a notification of any transfer or sale of tax credits within |
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30 days after the transfer or sale of those tax credits. The |
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notification, which shall be in the form prescribed by the |
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Comptroller's Office, shall include the transferor's tax credit |
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balance prior to transfer, the credit certificate number, the |
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transferor's remaining tax credit balance after transfer, all tax |
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identification numbers for both transferor and transferee, the date |
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of transfer, the amount transferred, a copy of the credit |
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certificate, and any other information required by the |
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Comptroller's Office. The transfer or sale of the credit does not |
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extend the time in which the credit can be used. The carry forward |
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period for a credit that is transferred or sold begins on the date |
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on which the credit was originally granted by the Comptroller's |
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Office. To the extent the transferor did not have rights to claim or |
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use the credit at the time of the transfer or sale, the |
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Comptroller's Office shall either disallow the credit claimed by |
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the transferee or recapture the credit from the transferee through |
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any collection method authorized by statute. In such case, the |
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transferee's recourse is against the transferor. |
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(f) A corporation that has any unused credits established |
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before the effective date of this Act under Subchapter Q, Chapter |
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171, Tax Code, may claim those unused credits on or with the tax |
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|
report for the period in which the credit was established. However, |
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|
if the corporation was allowed to carry forward unused credits |
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|
under that subchapter, the corporation may continue to apply those |
|
|
credits on or with each consecutive report until the earlier of the |
|
|
date the credit would have expired under the terms of Subchapter P, |
|
|
Chapter 171, Tax Code, had it continued in existence, or December |
|
|
31, 2016, and the former law under which the corporation |
|
|
established the credits is continued in effect for purposes of |
|
|
determining the amount of the credits the corporation may claim and |
|
|
the manner in which the corporation may claim the credit[.], |
|
|
provided, however, that the corporation also may transfer the |
|
|
unused credits by requesting a certificate of transferability of |
|
|
credit from the Comptroller's Office for the unexpired amount of |
|
|
credit not previously claimed. A transferability certificate so |
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|
issued may be transferred or sold by the recipient to another Texas |
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|
taxpayer. Transferors and sellers shall submit to the Comptroller's |
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|
Office a notification of any transfer or sale of tax credits within |
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|
30 days after the transfer or sale of those tax credits. The |
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notification, which shall be in the form prescribed by the |
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|
Comptroller's Office, shall include the transferor's tax credit |
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balance prior to transfer, the credit certificate number, the |
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|
transferor's remaining tax credit balance after transfer, all tax |
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|
identification numbers for both transferor and transferee, the date |
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|
of transfer, the amount transferred, a copy of the credit |
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|
certificate, and any other information required by the |
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|
Comptroller's Office. The transfer or sale of the credit does not |
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extend the time in which the credit can be used. The carry forward |
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period for a credit that is transferred or sold begins on the date |
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on which the credit was originally granted by the Comptroller's |
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Office. To the extent the transferor did not have rights to claim or |
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use the credit at the time of the transfer or sale, the |
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Comptroller's Office shall either disallow the credit claimed by |
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the transferee or recapture the credit from the transferee through |
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any collection method authorized by statute. In such case, the |
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transferee's recourse is against the transferor. |
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SECTION 2. This Act shall take effect on January 1, 2014. |