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A BILL TO BE ENTITLED
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AN ACT
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relating to the transfer of certain unused franchise tax credits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 18, Chapter 1 (H.B. 3), Acts of the 79th |
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Legislature, 3rd Called Session, 2006, is amended by adding |
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Subsections (h-1), (i-1), (j), and (k) to read as follows: |
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(h-1) In this subsection and Subsection (i-1) of this |
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section, "transfer" includes a sale. Notwithstanding Subsections |
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(e) and (f) of this section and subject to Subsection (k) of this |
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section, a corporation that had unused credits before January 1, |
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2008, under former Subchapter P or Q, Chapter 171, Tax Code, that |
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expired under the terms of one of those former subchapters or under |
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Subsection (e) or (f) of this section, may transfer the right to the |
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expired credits to another taxpayer of this state. A transferred |
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credit is considered to be newly established by the taxpayer to |
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which the credit is transferred on the date the transfer is |
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complete. To be eligible to transfer the credits, the corporation |
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must obtain a certificate of transfer of credit from the |
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comptroller for the amount of the credits to be transferred. Not |
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later than the 30th day after the date of the transfer, the |
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corporation must submit to the comptroller a notice of the transfer |
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in a form prescribed by the comptroller. The notice must be |
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accompanied by a copy of the certificate of transfer issued by the |
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comptroller and specify: |
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(1) the number on the certificate of transfer; |
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(2) the amount of the corporation's unused credits |
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preceding the transfer; |
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(3) the date of the transfer; |
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(4) the amount of credits transferred; |
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(5) the tax identification numbers of the corporation |
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and the taxpayer to which the credits were transferred; |
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(6) the corporation's remaining amount of unused |
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credits after the transfer; and |
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(7) any other information the comptroller requires. |
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(i-1) The transfer of a credit under Subsection (h-1) of |
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this section is limited to an unused credit for which the |
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corporation was eligible before January 1, 2008, and does not |
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include credits authorized under former Subchapter Q-1, Chapter |
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171, Tax Code, or credits that were created under the terms of a |
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written agreement between a taxpayer and the Texas Department of |
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Economic Development or its successor that was entered into before |
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June 1, 2006, and that continue to accrue under the terms provided |
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by Section 19 of this Act. The transferee of a credit under this |
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section obtains the credit subject to the same rights and |
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privileges as the transferor had on the date the credit was |
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originally established. The transfer of a credit under Subsection |
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(h-1) of this section does not extend or lessen the period during |
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which the credit may be claimed after the credit is newly |
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established by the taxpayer to which the credit is transferred as |
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provided by that subsection. If a corporation transfers a credit |
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that the corporation was not entitled to transfer at the time of the |
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transfer: |
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(1) the taxpayer to which the credit was transferred |
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may pursue any remedy authorized by law against the corporation and |
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may not pursue any remedy against the comptroller or this state; and |
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(2) the comptroller: |
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(A) may not allow the taxpayer to which the |
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credit was transferred to apply the credit on a report for a tax |
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listed in Subsection (j) of this section; or |
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(B) shall recover from the taxpayer the amount of |
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the credit the taxpayer claims on a report using any means |
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authorized by law. |
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(j) A taxpayer to which a credit is transferred under |
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Subsection (h-1) of this section may apply the credit against: |
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(1) the taxes due under Chapters 151, 152, 154, 155, |
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156, 158, 160, 161, 162, 171, 181, 182, 183, 191, 201, 202, and 203, |
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Tax Code; and |
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(2) a contribution due under Subtitle A, Title 4, |
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Labor Code. |
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(k) A corporation may not transfer an unused tax credit |
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under Subsection (h-1) of this section after August 31, 2017. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2015. |