82R10246 ALL-D
By: Morrison H.B. No. 3739
A BILL TO BE ENTITLED
AN ACT
relating to exempting the sale of certain property used for
research and development from the sales tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3182 to read as follows:
Sec. 151.3182. EQUIPMENT USED IN RESEARCH OR DEVELOPMENT.
(a) In this section, "manufacturing" has the meaning assigned by
Section 151.318.
(b) Except as provided by Subsections (d) and (f), the sale,
use, or other consumption of tangible personal property is exempted
from the taxes imposed by this chapter and a taxpayer may claim a
credit or refund as provided by Subsections (e) and (f) if the
tangible personal property is used directly in the research or
development of inventions, products, processes, or technology by a
person who is primarily engaged in:
(1) the manufacturing, processing, or fabrication of
tangible personal property for ultimate sale;
(2) the provision of telecommunications services; or
(3) the performance of scientific or technical
services for a person primarily engaged in an activity described by
Subdivision (1) or (2).
(c) This section applies to tangible personal property used
or consumed in research or development by persons primarily engaged
in manufacturing or the provision of telecommunications services
regardless of whether the tangible personal property:
(1) is used or consumed in the actual manufacturing,
processing, or fabrication of tangible personal property for
ultimate sale; or
(2) is directly used in the provision of
telecommunications services.
(d) This section does not apply to:
(1) office equipment or supplies; or
(2) equipment or supplies used in sales or
distribution activities or in transportation activities.
(e) Subject to Subsection (f), a taxpayer who pays tax on
tangible personal property exempted under this section is entitled
to either a credit of the amount paid against taxes owed under this
chapter or a refund of the amount paid. A taxpayer who elects a
credit must claim the credit on the return for a period that ends
not later than the first anniversary of the date on which the tax on
the item was paid. A taxpayer who elects a refund must apply to the
comptroller for the refund before or during the calendar year
following the year in which the tax on the item was paid.
(f) If the taxable event relating to tangible personal
property exempted under Subsection (b) occurs before September 1,
2017, the taxpayer must pay the tax on the property and apply for a
credit or refund. The exemption provided by Subsection (b) and the
amount of the credit or refund to which the person is entitled is
determined as follows:
(1) for tangible personal property for which the
taxable event occurred on or after September 1, 2013, and before
September 1, 2014, the taxpayer is entitled to a credit or refund in
an amount equal to 20 percent of the tax paid on the property;
(2) for tangible personal property for which the
taxable event occurred on or after September 1, 2014, and before
September 1, 2015, the taxpayer is entitled to a credit or refund in
an amount equal to 40 percent of the tax paid on the property;
(3) for tangible personal property for which the
taxable event occurred on or after September 1, 2015, and before
September 1, 2016, the taxpayer is entitled to a credit or refund in
an amount equal to 60 percent of the tax paid on the property; and
(4) for tangible personal property for which the
taxable event occurred on or after September 1, 2016, and before
September 1, 2017, the taxpayer is entitled to a credit or refund in
an amount equal to 80 percent of the tax paid on the property.
SECTION 2. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 3. This Act takes effect September 1, 2013.