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A BILL TO BE ENTITLED
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AN ACT
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relating to the federal tax provisions applicable to the |
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computation of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
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by adding Section 171.0005 to read as follows: |
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Sec. 171.0005. DEFINITION OF INTERNAL REVENUE CODE. (a) |
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Except as provided by Subsection (c), "Internal Revenue Code" means |
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the Internal Revenue Code of 1986 in effect for the federal tax year |
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beginning on January 1, 2015, not including any changes made by |
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federal law after that date, and any regulations adopted under that |
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code applicable to that period. |
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(b) Not later than December 1 of each year, the comptroller |
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by rule may adopt the Internal Revenue Code of 1986 in effect for |
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the federal tax year beginning on January 1 of that year, and any |
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regulations adopted under that code applicable to that period, as |
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the Internal Revenue Code applicable to this chapter if the |
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comptroller determines that adoption of the code in effect for that |
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federal tax year is consistent with the purposes of this chapter and |
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is in the best interest of tax administration. The adoption of the |
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Internal Revenue Code of 1986 in effect for a federal tax year |
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beginning on January 1 of a year applies beginning with reporting |
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periods beginning in that year. The rule continues in effect until |
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amended by the comptroller. |
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(c) If the comptroller adopts a rule under Subsection (b), |
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"Internal Revenue Code" means the Internal Revenue Code of 1986 in |
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effect for the federal tax year provided by the rule and any |
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regulations adopted under that code applicable to that period. |
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SECTION 2. Section 171.0001(9), Tax Code, is repealed. |
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SECTION 3. This Act applies to a report originally due on or |
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after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2016. |