Amend CSHB 1003 (senate committee report) as follows:

(1)  Add the following appropriately numbered SECTIONS to the bill and renumber the SECTIONS of the bill accordingly:

SECTION ____.  Section 171.901(4), Tax Code, is amended to read as follows:

(4)  "Eligible costs and expenses" means qualified rehabilitation expenditures as defined by Section 47(c)(2), Internal Revenue Code, except that the depreciation and tax-exempt use provisions of that section do not apply to costs and expenses incurred by an entity exempt from the tax imposed under this chapter by Section 171.063 or by an institution of higher education or university system as defined by Section 61.003, Education Code, and those costs and expenses are eligible costs and expenses if the other provisions of Section 47(c)(2), Internal Revenue Code, are satisfied.

SECTION ____.  Section 171.901(4), Tax Code, as amended by this Act, applies only to costs and expenses incurred on or after the effective date of this Act.