81R10451 DAK-F
By: Parker H.B. No. 4525
A BILL TO BE ENTITLED
AN ACT
relating to qualified manufacturing project zones.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Legislature of the State of Texas finds that
a qualified manufacturing project, as defined in this Act, serves
the public purposes of development and diversification of the
economy of this state, the elimination of unemployment or
underemployment in this state, and development or expansion of
commerce in this state.
SECTION 2. Chapter 2303, Government Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. QUALIFIED MANUFACTURING PROJECT ZONE
Sec. 2303.551. DEFINITION. In this subchapter, "qualified
manufacturing project" means a proposed new or expanded facility
that:
(1) is subject to an agreement entered into on or after
January 1, 2008, but before January 1, 2015, with a county,
municipality, or other taxing unit under Chapter 312, Tax Code, or
with a school district under Chapter 313, Tax Code, under which the
investment in the facility is at least $200 million;
(2) is a facility engaged in manufacturing, as that
term is defined by Section 151.318, Tax Code, the construction of
which begins on or after September 1, 2009; and
(3) is forecasted to create at least 300 full-time
equivalent employment positions.
Sec. 2303.552. DATE OF QUALIFICATION. A proposed facility
becomes a qualified manufacturing project on the later of:
(1) the date an agreement under Chapter 312 or 313, Tax
Code, is effective; or
(2) the date the owner of the facility files an election
to become a qualified manufacturing project with the comptroller.
Sec. 2303.553. QUALIFIED MANUFACTURING PROJECT ZONE. (a)
The county in which a qualified manufacturing project is proposed
to be built may apply to the office for designation of the project
as a qualified manufacturing project zone. If the office approves a
request under this subsection, the designation takes effect on the
date that a proposed facility becomes a qualified manufacturing
project.
(b) A county may contain only one qualified manufacturing
project that is a qualified manufacturing project zone at any one
time.
(c) A qualified manufacturing project that is a qualified
manufacturing project zone automatically qualifies for designation
as an enterprise project under this chapter, except that it is not
subject to Subchapters C and D.
(d) A qualified manufacturing project zone designation
remains in effect until the expiration of any tax limitations,
credits, abatements, or other benefits under an agreement entered
into under Chapter 312 or 313, Tax Code, for the qualified
manufacturing project.
Sec. 2303.554. BENEFITS. In addition to the benefits
described in Subchapter G, a qualified manufacturing project zone
is eligible for a refund of state sales and use taxes as provided by
Section 151.429(h-1), Tax Code.
Sec. 2303.555. ELIGIBLE TAXABLE PROCEEDS. (a) In this
section, "eligible taxable proceeds" means:
(1) taxable proceeds generated, paid, or collected by
a qualified manufacturing project zone; or
(2) an amount, as determined by a finding of the
applicable governmental body, of taxable proceeds that are a direct
or indirect result of the design, construction, or operation of the
qualified manufacturing project, including hotel occupancy taxes,
ad valorem taxes, sales and use taxes, and mixed beverage taxes.
(b) For a period beginning on the date that a qualified
manufacturing project becomes a qualified manufacturing project
zone under Section 2303.553 and ending on a date not later than the
10th anniversary of that date, a governmental body, including a
municipality, county, or political subdivision, may agree to
rebate, refund, or pay eligible taxable proceeds to the owner of a
qualified manufacturing project at which the eligible taxable
proceeds were generated.
(c) A governmental body that makes an agreement under this
section shall make the rebate, refund, or payment directly to the
beneficiary.
SECTION 3. Section 151.429(e), Tax Code, is amended by
adding Subdivisions (6), (7), (8), and (9) to read as follows:
(6) "Qualified manufacturing project" has the meaning
assigned that term by Section 2303.551, Government Code.
(7) "Sales tax base" means the amount of the sales and
use taxes collected under this chapter on purchases of all taxable
items purchased within the boundaries of a qualified manufacturing
project zone for the four calendar quarters ending before the date
the zone is designated.
(8) "Additional sales and use tax" means the total
amount of sales and use taxes collected under this chapter on
purchases of all taxable items purchased within a qualified
manufacturing project zone for each calendar quarter for the
duration of the qualified manufacturing project zone designation
less the sales tax base for the corresponding calendar quarter, not
otherwise due as a rebate or refund under any other applicable law.
(9) "Manufacturing workforce development" means any
expenditures incurred by the owner, or a contractor or
subcontractor of the owner, of a qualified manufacturing project
for recruiting or training present, prospective, or potential
employees for jobs in this state presently available or expected to
be available for the planning, designing, construction,
fabrication, or operation of a qualified manufacturing project, and
the salaries, wages, and benefits of those employees through the
first two years of commercial operation of the qualified
manufacturing project.
SECTION 4. Section 151.429, Tax Code, is amended by adding
Subsection (h-1) to read as follows:
(h-1) Notwithstanding any other provision of this section,
the owner of a qualified manufacturing project is entitled to
receive a payment of a refund of 50 percent of the additional sales
and use tax for the preceding calendar quarter. The comptroller
shall pay the refund at the end of the state fiscal quarter after
that calendar quarter for the duration of the designation of the
project as a qualified manufacturing project zone, but not to
exceed 10 years. The total amount of refunds that a qualified
manufacturing project may receive over the course of its
designation as a qualified manufacturing project zone may not
exceed an amount equal to five percent of the qualified
manufacturing project's investments in the facility under
Subchapter H, Chapter 2303, Government Code. A refund received
under this section shall be used to pay for or to refund eligible
expenses incurred before or after designation of the project as a
qualified manufacturing project zone for manufacturing workforce
development for the qualified manufacturing project.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.