2009S0626-1 03/09/09
By: West S.B. No. 1944
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for charitable contributions
made toward certain low-income residential housing programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter S to read as follows:
SUBCHAPTER S. TAX CREDIT FOR CHARITABLE CONTRIBUTIONS MADE TOWARD
CERTAIN LOW-INCOME RESIDENTIAL HOUSING PROGRAMS
Sec. 171.851. DEFINITIONS. In this subchapter:
(1) "Certified nonprofit owner-builder housing
program" means a housing program certified by the department under
Subchapter FF, Chapter 2306, Government Code.
(2) "Department" means the Texas Department of Housing
and Community Affairs.
Sec. 171.852. CREDIT. A taxable entity that meets the
eligibility requirements under this subchapter is entitled to a
credit in the amount allowed by this subchapter against the tax
imposed under this chapter.
Sec. 171.853. CHARITABLE CONTRIBUTIONS ELIGIBLE FOR CREDIT.
(a) A taxable entity may claim a credit under this subchapter only
for a charitable contribution made to a certified nonprofit
owner-builder housing program toward costs incurred by the housing
program to construct, remodel, improve, or rehabilitate
residential housing.
(b) The department shall determine the eligible certified
nonprofit owner-builder housing programs that incur costs toward
which a taxable entity may make a qualifying charitable
contribution.
(c) The comptroller, in cooperation with the department,
shall adopt rules regarding the type of charitable contribution for
which a taxable entity may claim a credit.
Sec. 171.854. AMOUNT; LIMITATIONS. (a) The amount of a
qualifying charitable contribution made toward costs incurred at a
single residential housing project for which a taxable entity may
claim a credit may not exceed $25,000.
(b) The total amount of credit that a taxable entity may
claim during a reporting period is equal to the lesser of:
(1) $200,000; or
(2) the amount of net franchise tax due, after
applying any other credits, for the reporting period.
(c) A taxable entity may claim a credit under this
subchapter for a qualifying charitable contribution during an
accounting period only against the tax owed for the corresponding
reporting period.
Sec. 171.855. CERTIFICATION. A taxable entity is not
eligible for a credit under this subchapter unless the taxable
entity receives a written certification from the department that
the charitable contribution is made toward costs incurred by an
eligible certified nonprofit owner-builder housing program as
determined by the department under Section 171.853(b).
Sec. 171.856. APPLICATION FOR CREDIT. (a) 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. The taxable
entity must include a copy of the certification required by Section
171.855 with the application.
(b) The comptroller shall adopt a form that a taxable entity
must use in applying for the credit.
Sec. 171.857. ASSIGNMENT PROHIBITED. A taxable entity may
not convey, assign, or transfer a credit allowed under this
subchapter to another entity unless all of the assets of the taxable
entity are conveyed, assigned, or transferred in the same
transaction.
SECTION 2. (a) This Act applies only to a report originally
due on or after the effective date of this Act.
(b) A taxable entity may claim the credit under Subchapter
S, Chapter 171, Tax Code, as added by this Act, only for a
qualifying charitable contribution made on or after the effective
date of this Act.
SECTION 3. This Act takes effect January 1, 2010.