81R2267 CBH-D
By: McCall H.B. No. 4030
A BILL TO BE ENTITLED
AN ACT
relating to a tax credit for donations of certain art to art museums
in this state that are open to the public.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. TAX CREDIT FOR CERTAIN ART DONATIONS
Sec. 171.521. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions and
limitations provided by this subchapter against the tax imposed
under this chapter.
Sec. 171.522. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if the taxable entity donates to
an art museum in this state that is open to the public a work of art
that:
(1) the taxable entity has owned for at least five
years; and
(2) the museum intends to include in the museum's
permanent collection.
Sec. 171.523. AMOUNT; LIMITATIONS. (a) The amount of the
credit is equal to the total appraised value of each work of art
described by Section 171.522 that is donated during the privilege
period.
(b) The credit claimed for each privilege period may not
exceed the amount of franchise tax due, before any other applicable
tax credits, for the privilege period.
(c) A taxable entity may claim a credit under this
subchapter for a donation made during an accounting period only
against the tax owed for the corresponding privilege period.
(d) A taxable entity may not carry over a credit amount for a
donation made during a privilege period to a subsequent privilege
period.
(e) A taxable entity may not convey, assign, or transfer a
credit under this subchapter to another entity unless all of the
assets of the taxable entity are conveyed, assigned, or transferred
in the same transaction.
Sec. 171.524. APPLICATION FOR CREDIT. A taxable entity
must apply for a credit under this subchapter on or with the tax
report for the period for which the credit is claimed.
Sec. 171.525. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.