Texas 2009 - 81st Regular

Texas House Bill HB2790 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R11703 CBH-D
2	2	By: Homer H.B. No. 2790
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to franchise tax incentives for recycling.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 171.1011(p), Tax Code, is amended by
10	10	adding Subdivisions (4-c) and (4-d) to read as follows:
11	11	(4-c) "Recycled product" has the meaning assigned by
12	12	Section 361.421, Health and Safety Code.
13	13	(4-d) "Solid waste" has the meaning assigned by
14	14	Section 361.003, Health and Safety Code.
15	15	SECTION 2. Section 171.1011, Tax Code, is amended by adding
16	16	Subsection (x) to read as follows:
17	17	(x) A taxable entity may exclude, to the extent included
18	18	under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), all revenue
19	19	received from sales of recycled products manufactured by the
20	20	taxable entity. A taxable entity is entitled to exclude revenue
21	21	received from the sale of recycled products under this subsection
22	22	only if:
23	23	(1) the taxable entity is not primarily engaged in the
24	24	business of manufacturing and selling recycled products; and
25	25	(2) the taxable entity demonstrates to the comptroller
26	26	that the recycled products were manufactured using waste that the
27	27	taxable entity would otherwise have disposed of as solid waste.
28	28	SECTION 3. Subchapter C, Chapter 171, Tax Code, is amended
29	29	by adding Section 171.1045 to read as follows:
30	30	Sec. 171.1045. GROSS RECEIPTS: DEDUCTION FOR RECYCLED
31	31	PRODUCTS. (a) In this section:
32	32	(1) "Recycled product" has the meaning assigned by
33	33	Section 361.421, Health and Safety Code.
34	34	(2) "Solid waste" has the meaning assigned by Section
35	35	361.003, Health and Safety Code.
36	36	(b) A taxable entity may exclude from its receipts
37	37	includable under Sections 171.103(a)(1) and 171.105(a)(1) the
38	38	amount of the taxable entity's receipts from sales of recycled
39	39	products manufactured by the taxable entity. A taxable entity that
40	40	chooses to exclude receipts as provided by this section shall
41	41	exclude those receipts from each computation of gross receipts
42	42	required by this chapter.
43	43	(c) A taxable entity is entitled to exclude receipts under
44	44	this section only if:
45	45	(1) the taxable entity is not primarily engaged in the
46	46	business of manufacturing and selling recycled products; and
47	47	(2) the taxable entity demonstrates to the comptroller
48	48	that the recycled products were manufactured using waste that the
49	49	taxable entity would otherwise have disposed of as solid waste.
50	50	SECTION 4. Chapter 171, Tax Code, is amended by adding
51	51	Subchapter W to read as follows:
52	52	SUBCHAPTER W. TAX CREDIT FOR CAPITAL EXPENDITURES FOR CERTAIN
53	53	RECYCLING EQUIPMENT
54	54	Sec. 171.951. DEFINITIONS. In this subchapter:
55	55	(1) "Recycling equipment" means equipment necessary
56	56	to assist a taxable entity in recycling waste and used
57	57	predominantly for that purpose.
58	58	(2) "Solid waste" has the meaning assigned by Section
59	59	361.003, Health and Safety Code.
60	60	Sec. 171.952. ELIGIBILITY. A taxable entity is eligible for
61	61	a credit against the tax imposed under this chapter in the amount
62	62	and under the conditions and limitations provided by this
63	63	subchapter.
64	64	Sec. 171.953. CREDIT FOR CAPITAL EXPENDITURE FOR RECYCLING
65	65	EQUIPMENT. (a) A taxable entity may claim a credit under this
66	66	subchapter only for a capital expenditure made toward purchasing
67	67	recycling equipment.
68	68	(b) A taxable entity is entitled to a credit under this
69	69	section only if:
70	70	(1) the taxable entity is not primarily engaged in the
71	71	business of manufacturing and selling recycled products; and
72	72	(2) the taxable entity demonstrates to the comptroller
73	73	that the recycling equipment was used to recycle waste that the
74	74	taxable entity would otherwise have disposed of as solid waste.
75	75	Sec. 171.954. AMOUNTS; LIMITATIONS. (a) The amount of the
76	76	credit is equal to the lesser of:
77	77	(1) the total amount of the capital expenditure made
78	78	during the reporting period; or
79	79	(2) $50,000.
80	80	(b) The taxable entity may claim the credit only in five
81	81	equal installments of one-fifth the credit amount over five
82	82	consecutive reports beginning with the report based on the period
83	83	during which the capital expenditure was made.
84	84	Sec. 171.955. APPLICATION FOR CREDIT. (a) A taxable entity
85	85	must apply for a credit under this subchapter on or with the tax
86	86	report for the period for which the credit is claimed.
87	87	(b) The comptroller shall adopt a form for the application
88	88	for the credit. A taxable entity must use this form in applying for
89	89	the credit.
90	90	Sec. 171.956. ASSIGNMENT PROHIBITED. A taxable entity may
91	91	not convey, assign, or transfer the credit allowed under this
92	92	subchapter to another entity unless all of the assets of the taxable
93	93	entity are conveyed, assigned, or transferred in the same
94	94	transaction.
95	95	SECTION 5. (a) This Act applies only to a report
96	96	originally due on or after the effective date of this Act.
97	97	(b) A taxable entity may claim a credit under Subchapter W,
98	98	Chapter 171, Tax Code, as added by this Act, only for an expenditure
99	99	made on or after the effective date of this Act.
100	100	SECTION 6. This Act takes effect January 1, 2010.