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A BILL TO BE ENTITLED
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AN ACT
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relating to federal refundable credits paid directly to issuers of |
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certain bonds issued by or on behalf of school districts or |
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open-enrollment charter schools. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 45, Education Code, is |
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amended by adding Section 45.114 to read as follows: |
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Sec. 45.114. DEPOSIT OF DIRECT PAY SUBSIDIES ON CERTAIN |
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FEDERAL TAX CREDIT BONDS. (a) This section applies only to bonds: |
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(1) that were issued as: |
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(A) build America bonds in accordance with former |
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Section 54AA, Internal Revenue Code of 1986, as added by Section |
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1531(a), Title I, Division B, American Recovery and Reinvestment |
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Act of 2009 (Pub. L. No. 111-5); |
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(B) qualified school construction bonds in |
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accordance with Section 54F, Internal Revenue Code of 1986, as |
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added by Section 1521(a), Title I, Division B, American Recovery |
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and Reinvestment Act of 2009 (Pub. L. No. 111-5); or |
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(C) qualified zone academy bonds in accordance |
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with Section 54E, Internal Revenue Code of 1986, as added by Section |
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313(a), Title III, Division C, Emergency Economic Stabilization Act |
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of 2008 (Pub. L. No. 110-343); and |
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(2) for which a school district or open-enrollment |
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charter school elected to receive a federal refundable tax credit |
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in accordance with: |
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(A) for bonds described by Subdivision (1)(A), |
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former Section 54AA(f), Internal Revenue Code of 1986; or |
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(B) for bonds described by Subdivision (1)(B) or |
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(C), former Section 6431, Internal Revenue Code of 1986. |
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(b) A school district or open-enrollment charter school |
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shall deposit a federal refundable tax credit payment described by |
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Subsection (a)(2) and received in connection with a bond issued by |
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or on behalf of the school district or open-enrollment charter |
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school to the credit of the interest and sinking fund established |
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for that bond. |
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SECTION 2. This Act takes effect September 1, 2019. |