| 1 | 1 | | 81R2267 CBH-D |
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| 2 | 2 | | By: McCall H.B. No. 4030 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a tax credit for donations of certain art to art museums |
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| 8 | 8 | | in this state that are open to the public. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter K to read as follows: |
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| 12 | 12 | | SUBCHAPTER K. TAX CREDIT FOR CERTAIN ART DONATIONS |
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| 13 | 13 | | Sec. 171.521. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 14 | 14 | | entitled to a credit in the amount and under the conditions and |
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| 15 | 15 | | limitations provided by this subchapter against the tax imposed |
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| 16 | 16 | | under this chapter. |
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| 17 | 17 | | Sec. 171.522. QUALIFICATION. A taxable entity qualifies |
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| 18 | 18 | | for a credit under this subchapter if the taxable entity donates to |
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| 19 | 19 | | an art museum in this state that is open to the public a work of art |
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| 20 | 20 | | that: |
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| 21 | 21 | | (1) the taxable entity has owned for at least five |
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| 22 | 22 | | years; and |
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| 23 | 23 | | (2) the museum intends to include in the museum's |
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| 24 | 24 | | permanent collection. |
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| 25 | 25 | | Sec. 171.523. AMOUNT; LIMITATIONS. (a) The amount of the |
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| 26 | 26 | | credit is equal to the total appraised value of each work of art |
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| 27 | 27 | | described by Section 171.522 that is donated during the privilege |
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| 28 | 28 | | period. |
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| 29 | 29 | | (b) The credit claimed for each privilege period may not |
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| 30 | 30 | | exceed the amount of franchise tax due, before any other applicable |
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| 31 | 31 | | tax credits, for the privilege period. |
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| 32 | 32 | | (c) A taxable entity may claim a credit under this |
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| 33 | 33 | | subchapter for a donation made during an accounting period only |
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| 34 | 34 | | against the tax owed for the corresponding privilege period. |
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| 35 | 35 | | (d) A taxable entity may not carry over a credit amount for a |
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| 36 | 36 | | donation made during a privilege period to a subsequent privilege |
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| 37 | 37 | | period. |
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| 38 | 38 | | (e) A taxable entity may not convey, assign, or transfer a |
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| 39 | 39 | | credit under this subchapter to another entity unless all of the |
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| 40 | 40 | | assets of the taxable entity are conveyed, assigned, or transferred |
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| 41 | 41 | | in the same transaction. |
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| 42 | 42 | | Sec. 171.524. APPLICATION FOR CREDIT. A taxable entity |
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| 43 | 43 | | must apply for a credit under this subchapter on or with the tax |
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| 44 | 44 | | report for the period for which the credit is claimed. |
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| 45 | 45 | | Sec. 171.525. RULES. The comptroller shall adopt rules |
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| 46 | 46 | | necessary to implement this subchapter. |
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| 47 | 47 | | SECTION 2. This Act applies only to a report originally due |
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| 48 | 48 | | on or after the effective date of this Act. |
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| 49 | 49 | | SECTION 3. This Act takes effect January 1, 2010. |
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