| 1 | 1 | | By: Eiland H.B. No. 4491 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to a tax credit for eligible costs and expenses incurred |
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| 7 | 7 | | during the rehabilitation of a historic structure located in a |
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| 8 | 8 | | severely damaged or flooded census tract. |
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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 [__] to read as follows: |
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| 12 | 12 | | SUBCHAPTER [__]. CREDIT FOR REHABILITATION OF A HISTORIC |
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| 13 | 13 | | STRUCTURE |
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| 14 | 14 | | Sec. 171.[__]. DEFINITIONS. In this subchapter: |
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| 15 | 15 | | (1) "Commission" means the Texas Historical |
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| 16 | 16 | | Commission. |
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| 17 | 17 | | (2) "Eligible costs and expenses" means qualified |
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| 18 | 18 | | rehabilitation expenditures as defined in Section 47(c)(2)(A) of |
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| 19 | 19 | | the Internal Revenue Code of 1986, as amended, except that |
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| 20 | 20 | | "substantially rehabilitated" shall mean that the qualified |
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| 21 | 21 | | rehabilitation expenditures must exceed five thousand dollars. |
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| 22 | 22 | | (3) "FEMA" means the United State Federal Emergency |
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| 23 | 23 | | Management Agency. |
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| 24 | 24 | | (4) "Severely damaged or flooded census tract" means |
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| 25 | 25 | | any census tract that has been flooded or damaged, as determined by |
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| 26 | 26 | | FEMA or the Governor's Division of Emergency Management within the |
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| 27 | 27 | | past four years. |
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| 28 | 28 | | Sec. 171.[__]. CREDIT. (a) There shall be allowed a credit |
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| 29 | 29 | | against the tax imposed under this Chapter 171, Franchise Tax, in an |
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| 30 | 30 | | amount equal to twenty-five percent (25%) of the eligible costs and |
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| 31 | 31 | | expenses incurred during the rehabilitation of a historic |
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| 32 | 32 | | structure. |
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| 33 | 33 | | (b) The credit is earned by the entity that owns the |
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| 34 | 34 | | historic structure in the year in which the property attributable |
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| 35 | 35 | | to the eligible costs and expenses is placed in service. |
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| 36 | 36 | | (c) In order to qualify for the credit, the historic |
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| 37 | 37 | | structure must be located in a severely damaged or flooded census |
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| 38 | 38 | | tract and either listed on the National Register of Historic Places |
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| 39 | 39 | | or be certified by the commission as contributing to the historical |
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| 40 | 40 | | significance of the census tract or the state. |
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