84R2781 TJB-D

By: Dutton H.B. No. 752

A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of property used for affordable housing for ad valorem tax benefits under the Texas Economic Development Act.

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

SECTION 1. Section 313.024(b), Tax Code, is amended to read as follows:

(b) To be eligible for a limitation on appraised value under this subchapter, the entity must use the property for:

(1) manufacturing;

(2) research and development;

(3) a clean coal project, as defined by Section 5.001, Water Code;

(4) an advanced clean energy project, as defined by Section 382.003, Health and Safety Code;

(5) renewable energy electric generation;

(6) electric power generation using integrated gasification combined cycle technology;

(7) nuclear electric power generation;

(8) a computer center primarily used in connection with one or more activities described by Subdivisions (1) through (7) conducted by the entity; [or]

(9) a Texas priority project; or

(10) affordable housing.

SECTION 2. Section 313.024(e), Tax Code, is amended by adding Subdivision (8) to read as follows:

(8) "Affordable housing" means housing that is owned for the purpose of renting the housing to individuals or families whose median income is not more than 70 percent of the area median family income for the household's place of residence, as adjusted for family size and as established by the United States Department of Housing and Urban Development.

SECTION 3. The changes in law made by this Act apply only to an agreement entered into under Chapter 313, Tax Code, on or after the effective date of this Act. An agreement entered into under that chapter before the effective date of this Act is governed by the law in effect on the date the agreement was entered into, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2015.