83R1100 CJC-D
By: N. Gonzalez of El Paso H.B. No. 1623
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax exemption for certain property and
services used in research and development activities by a
qualifying biotechnology start-up.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3183 to read as follows:
Sec. 151.3183. CERTAIN PROPERTY AND SERVICES USED IN
RESEARCH AND DEVELOPMENT ACTIVITIES BY A QUALIFYING BIOTECHNOLOGY
START-UP. (a) In this section:
(1) "Internal Revenue Code" means the Internal Revenue
Code of 1986 in effect on December 31, 2011, excluding any changes
made by federal law after that date, but including any regulations
adopted under that code applicable to the tax year to which the
provisions of the code in effect on that date applied.
(2) "Qualified research" and "qualified service" have
the meanings assigned by Section 41, Internal Revenue Code.
(3) "Qualifying biotechnology start-up" means a
start-up business:
(A) located in this state on or after September
1, 2013; and
(B) engaged primarily in the study of biological
systems to develop products or processes for a specific use.
(b) The sale, storage, use, or other consumption of tangible
personal property directly used or consumed in qualified research
or of qualified services is exempted from the taxes imposed by this
chapter if the property or services are sold, leased, or rented to,
or stored, used, or consumed by, a qualifying biotechnology
start-up engaged in qualified research.
SECTION 2. Section 151.3183, Tax Code, as added by this Act,
does 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 October 1, 2013.