87R19269 SRA-D
 
  By: Noble, Guillen H.B. No. 3777
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to eligible costs and expenses for purposes of the
  franchise tax credit for the certified rehabilitation of certified
  historic structures.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 171.901(4), Tax Code, as effective
  January 1, 2022, is redesignated as Section 171.9015, Tax Code, and
  amended to read as follows:
         Sec. 171.9015.  ELIGIBLE COSTS AND EXPENSES. (a) Subject to
  Subsections (b) and (c), in this subchapter, "eligible [(4)
  "Eligible] costs and expenses" means qualified rehabilitation
  expenditures as defined by Section 47(c)(2), Internal Revenue Code.
         (b)  Except as provided by Subsection (c), the [, except that
  the] depreciation and tax-exempt use provisions of Section
  47(c)(2), Internal Revenue Code, [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, and those costs and expenses
  are eligible costs and expenses if the other provisions of Section
  47(c)(2), Internal Revenue Code, are satisfied.
         (c)  Expenditures by an entity described by Subsection (b) to
  rehabilitate a structure that is leased to a tax-exempt entity in a
  disqualified lease, as those terms are defined by Section 168(h),
  Internal Revenue Code, are not eligible costs and expenses.
         SECTION 2.  The change in law made by this Act to Section
  171.901(4), Tax Code, applies only to costs and expenses incurred
  on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2022.