Texas House Bill HB1593

Texas 2009 - 81st Regular

Caption

Relating to tax credits for qualified low-income community investments.

Impact

The implementation of HB 1593 will potentially stimulate economic revitalization in designated low-income communities in Texas. By providing tax credits, the bill incentivizes investments that might not otherwise occur in these areas due to financial risks or lower expected returns. Additionally, the total amount of tax credits that can be allocated per fiscal year is capped at $14 million, which is designed to manage the fiscal implications while still providing considerable support for community development initiatives.

Summary

House Bill 1593 seeks to provide tax credits for qualified low-income community investments through amendments to the Texas Tax Code. The bill creates a framework that allows taxable entities to claim tax credits against their premium tax liability based on their investments in qualified low-income community businesses. Specifically, this bill aims to encourage investment in areas that require economic development and support, thereby aiming to bolster economic growth and enhance community sustainability.

Contention

One notable point of contention surrounding HB 1593 is the allocation limit, which may be viewed as insufficient by advocates for low-income communities who argue that the need for investment far exceeds the total available credits. Moreover, concerns may arise about the eligibility of kinds of investments deemed 'qualified' and how effectively the program could manage and verify compliance with investment criteria, which could impact the overall success of the initiative. Legislative discussions may center on ensuring that funds are utilized as intended without bureaucratic impediments that could hinder timely investments.