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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for taxable entities that |
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purchase certain theft deterrent and property loss prevention |
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equipment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. TAX CREDIT FOR PURCHASE OF THEFT DETERRENT AND |
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PROPERTY LOSS PREVENTION EQUIPMENT |
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Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions provided |
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by this subchapter against the tax imposed under this chapter. |
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Sec. 171.702. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity purchases |
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one or more items of theft deterrent or property loss prevention |
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equipment included on the list of eligible equipment adopted under |
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Section 171.707. |
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Sec. 171.703. AMOUNT OF CREDIT; LIMITATION. (a) Subject to |
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Subsection (b), the amount of the credit for a report is equal to |
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the total amount of costs and expenses incurred by a taxable entity |
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to purchase items described by Section 171.702 during the period on |
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which the report is based, including the purchase price of those |
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items. |
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(b) The total credit claimed on a report, including the |
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amount of any carryforward under Section 171.704, may not exceed |
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the amount of franchise tax due for the report after applying all |
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other applicable credits. |
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Sec. 171.704. CARRYFORWARD. (a) A taxable entity that is |
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eligible for a credit that exceeds the limitation under Section |
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171.703(b) may carry the unused credit forward for not more than |
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five consecutive reports. |
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(b) A carryforward is considered the remaining portion of a |
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credit that cannot be claimed in the current year because of the |
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limitation under Section 171.703(b). |
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(c) Credits, including a carryforward, are considered to be |
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used in the following order: |
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(1) a carryforward under this subchapter; and |
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(2) a current year credit. |
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Sec. 171.705. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the report |
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for the period for which the credit is claimed. |
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(b) The comptroller shall prescribe the form and method a |
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taxable entity must use to apply for the credit. |
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(c) The comptroller may require a taxable entity to submit |
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with an application any information needed to determine whether the |
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taxable entity qualifies for the credit or the amount of the credit. |
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Sec. 171.706. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable |
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entity may not convey, assign, or transfer the credit allowed under |
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this subchapter to another taxable entity unless substantially all |
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of the assets of the taxable entity are conveyed, assigned, or |
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transferred in the same transaction. |
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Sec. 171.707. RULES. The comptroller shall adopt rules |
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necessary to implement and administer this subchapter, including a |
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list of equipment useful or necessary to deter theft or prevent |
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property loss that is eligible for the credit. |
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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 January 1, 2024. |