| 1 | 1 | | 2009S0626-1 03/09/09 |
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| 2 | 2 | | By: West S.B. No. 1944 |
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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 franchise tax credit for charitable contributions |
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| 8 | 8 | | made toward certain low-income residential housing programs. |
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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 S to read as follows: |
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| 12 | 12 | | SUBCHAPTER S. TAX CREDIT FOR CHARITABLE CONTRIBUTIONS MADE TOWARD |
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| 13 | 13 | | CERTAIN LOW-INCOME RESIDENTIAL HOUSING PROGRAMS |
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| 14 | 14 | | Sec. 171.851. DEFINITIONS. In this subchapter: |
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| 15 | 15 | | (1) "Certified nonprofit owner-builder housing |
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| 16 | 16 | | program" means a housing program certified by the department under |
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| 17 | 17 | | Subchapter FF, Chapter 2306, Government Code. |
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| 18 | 18 | | (2) "Department" means the Texas Department of Housing |
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| 19 | 19 | | and Community Affairs. |
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| 20 | 20 | | Sec. 171.852. CREDIT. A taxable entity that meets the |
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| 21 | 21 | | eligibility requirements under this subchapter is entitled to a |
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| 22 | 22 | | credit in the amount allowed by this subchapter against the tax |
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| 23 | 23 | | imposed under this chapter. |
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| 24 | 24 | | Sec. 171.853. CHARITABLE CONTRIBUTIONS ELIGIBLE FOR CREDIT. |
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| 25 | 25 | | (a) A taxable entity may claim a credit under this subchapter only |
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| 26 | 26 | | for a charitable contribution made to a certified nonprofit |
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| 27 | 27 | | owner-builder housing program toward costs incurred by the housing |
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| 28 | 28 | | program to construct, remodel, improve, or rehabilitate |
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| 29 | 29 | | residential housing. |
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| 30 | 30 | | (b) The department shall determine the eligible certified |
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| 31 | 31 | | nonprofit owner-builder housing programs that incur costs toward |
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| 32 | 32 | | which a taxable entity may make a qualifying charitable |
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| 33 | 33 | | contribution. |
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| 34 | 34 | | (c) The comptroller, in cooperation with the department, |
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| 35 | 35 | | shall adopt rules regarding the type of charitable contribution for |
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| 36 | 36 | | which a taxable entity may claim a credit. |
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| 37 | 37 | | Sec. 171.854. AMOUNT; LIMITATIONS. (a) The amount of a |
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| 38 | 38 | | qualifying charitable contribution made toward costs incurred at a |
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| 39 | 39 | | single residential housing project for which a taxable entity may |
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| 40 | 40 | | claim a credit may not exceed $25,000. |
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| 41 | 41 | | (b) The total amount of credit that a taxable entity may |
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| 42 | 42 | | claim during a reporting period is equal to the lesser of: |
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| 43 | 43 | | (1) $200,000; or |
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| 44 | 44 | | (2) the amount of net franchise tax due, after |
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| 45 | 45 | | applying any other credits, for the reporting period. |
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| 46 | 46 | | (c) A taxable entity may claim a credit under this |
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| 47 | 47 | | subchapter for a qualifying charitable contribution during an |
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| 48 | 48 | | accounting period only against the tax owed for the corresponding |
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| 49 | 49 | | reporting period. |
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| 50 | 50 | | Sec. 171.855. CERTIFICATION. A taxable entity is not |
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| 51 | 51 | | eligible for a credit under this subchapter unless the taxable |
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| 52 | 52 | | entity receives a written certification from the department that |
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| 53 | 53 | | the charitable contribution is made toward costs incurred by an |
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| 54 | 54 | | eligible certified nonprofit owner-builder housing program as |
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| 55 | 55 | | determined by the department under Section 171.853(b). |
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| 56 | 56 | | Sec. 171.856. APPLICATION FOR CREDIT. (a) A taxable entity |
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| 57 | 57 | | must apply for a credit under this subchapter on or with the tax |
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| 58 | 58 | | report for the period for which the credit is claimed. The taxable |
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| 59 | 59 | | entity must include a copy of the certification required by Section |
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| 60 | 60 | | 171.855 with the application. |
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| 61 | 61 | | (b) The comptroller shall adopt a form that a taxable entity |
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| 62 | 62 | | must use in applying for the credit. |
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| 63 | 63 | | Sec. 171.857. ASSIGNMENT PROHIBITED. A taxable entity may |
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| 64 | 64 | | not convey, assign, or transfer a credit allowed under this |
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| 65 | 65 | | subchapter to another entity unless all of the assets of the taxable |
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| 66 | 66 | | entity are conveyed, assigned, or transferred in the same |
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| 67 | 67 | | transaction. |
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| 68 | 68 | | SECTION 2. (a) This Act applies only to a report originally |
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| 69 | 69 | | due on or after the effective date of this Act. |
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| 70 | 70 | | (b) A taxable entity may claim the credit under Subchapter |
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| 71 | 71 | | S, Chapter 171, Tax Code, as added by this Act, only for a |
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| 72 | 72 | | qualifying charitable contribution made on or after the effective |
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| 73 | 73 | | date of this Act. |
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| 74 | 74 | | SECTION 3. This Act takes effect January 1, 2010. |
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