Relating to franchise tax and insurance premium tax credits for investment in certain communities; imposing a monetary penalty; authorizing fees.
Impact
The implications of HB1928 can significantly affect state tax law, particularly in how investments in low-income communities are recognized and regulated for tax purposes. The bill mandates that to avoid recapture of claimed credits, qualified community development entities must maintain certain investment thresholds and report compliance regularly to the comptroller. These requirements promote accountability in the use of tax credits and potentially enhance the state’s ability to monitor economic activity resulting from these investments.
Summary
House Bill 1928 addresses tax credits available to qualified investors making investments in certain communities. Specifically, it establishes frameworks for franchise tax and insurance premium tax credits that incentivize investments aimed at low-income areas. With provisions for investment definitions, credit allowances, and compliance requirements, the bill is designed to promote economic growth in underserved communities by encouraging capital flows into these regions. It allows for a structured approach to following up on the deployment of these credits to ensure that investments serve their intended purpose.
Contention
However, the bill is not without points of potential contention. Opponents may argue that the rigorous compliance and reporting requirements may deter smaller investors or community entities from participating due to increased administrative burdens. Supporters, on the other hand, assert that only through stringent recommendations can effective oversight prevent misuse of funds meant for community development. The balance between facilitating investment and imposing compliance measures presents an area of discussion among stakeholders.
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 agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to the establishment of the Texas Mircale Act (TMA), allowing for certain fees, authorizing certain ad valorem tax incentives for economic development, specifically certain tax relief from school district taxes for certain corporations and limited liability companies that make large investments that create jobs in this state, to authorizing the imposition of certain fees, and the repeal of Chapter 313 of Texas Tax Code and the Economic Development Act of the 77th Legislature.