Relating to an insurance premium tax credit for investment in certain communities; imposing a monetary penalty; authorizing fees.
Impact
The expected impact of SB1295 on state laws involves the facilitation of targeted economic growth in low-income areas through financial incentives. By establishing a framework for tax credits associated with investments in qualified equity, the bill encourages the generation of capital in economically disadvantaged neighborhoods. The Comptroller's oversight ensures that investments meet compliance requirements and that the tax credits are issued responsibly. A biennial report will be prepared to assess the implementation and effectiveness of the program, shedding light on its contributions to local economies and job creation.
Summary
Senate Bill 1295 introduces an insurance premium tax credit aimed at encouraging investment in designated communities through qualified community development entities. The bill stipulates that investing entities can receive tax credits based on the amount of equity investments made in low-income communities. These credits gradually increase in percentage over a specified timeline, incentivizing investors to commit funds into these regions over time. The bill is structured to benefit both rural areas and urban municipalities with various allocations for community development projects.
Contention
Notably, potential points of contention around SB1295 may arise regarding the balance of benefits between urban and rural allocations, as well as the administrative feasibility of managing the tax credits. Concerns may include the adequacy of oversight by the Comptroller in ensuring that the tax incentives translate into tangible improvements in living standards in the targeted communities. The requirement for reports and penalties for non-compliance may also incite debate on whether this creates an adequate incentive for genuine investment as opposed to mere compliance with tax credit provisions.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.