By: Watson S.B. No. 1658

(In the Senate - Filed March 13, 2015; March 23, 2015, read first time and referred to Committee on Intergovernmental Relations; May 12, 2015, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 2; May 12, 2015, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1658 By: Lucio

A BILL TO BE ENTITLED

AN ACT

relating to a study and report on the establishment of a franchise tax credit for the development of low income housing.

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

SECTION 1. (a) In this Act, "department" means the Texas Department of Housing and Community Affairs.

(b) The department shall conduct a study to evaluate the feasibility, methods, and costs of establishing a franchise tax credit for the development of low income housing.

(c) In conducting the study, the department shall:

(1) evaluate and identify any sources of funding that might be available to cover the probable cost of the credit;

(2) evaluate methods that have been implemented by other states to provide a similar tax credit for the development of low income housing and identify the method or methods that have resulted in the greatest increase in the number of affordable housing units;

(3) consider potential credit amounts and estimate:

(A) the number of affordable housing units that would result from each credit amount; and

(B) the probable cost of each credit amount;

(4) estimate any tax savings to businesses that would result if the credit could be sold or exchanged; and

(5) identify the state agency or agencies that could most efficiently implement and administer the credit.

(d) The comptroller of public accounts shall assist the department in conducting the study at the department's request.

(e) Not later than September 1, 2016, the department shall submit to the legislature a written report on the results of the study and any recommendations for legislative or other action.

(f) This Act expires September 1, 2017.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.

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