| 1 | 1 | | 83R19499 BEF-F |
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| 2 | 2 | | By: Hilderbran H.B. No. 1735 |
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| 3 | 3 | | Substitute the following for H.B. No. 1735: |
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| 4 | 4 | | By: Hilderbran C.S.H.B. No. 1735 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the exclusion of certain taxable entities from a |
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| 10 | 10 | | combined group for purposes of the franchise tax. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 171.1014, Tax Code, is amended by adding |
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| 13 | 13 | | Subsection (j) to read as follows: |
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| 14 | 14 | | (j) Notwithstanding any other provision of this section, a |
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| 15 | 15 | | taxable entity that provides retail or wholesale electric utilities |
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| 16 | 16 | | may not be included as a member of a combined group that includes |
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| 17 | 17 | | one or more taxable entities that do not provide retail or wholesale |
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| 18 | 18 | | electric utilities if that combined group in the absence of this |
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| 19 | 19 | | subsection: |
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| 20 | 20 | | (1) would not meet the requirements of Section |
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| 21 | 21 | | 171.002(c) solely because one or more members of the combined group |
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| 22 | 22 | | provide retail or wholesale electric utilities; and |
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| 23 | 23 | | (2) would have less than five percent of the combined |
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| 24 | 24 | | group's total revenue derived from providing retail or wholesale |
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| 25 | 25 | | electric utilities. |
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| 26 | 26 | | SECTION 2. It is the intent of the legislature that certain |
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| 27 | 27 | | taxable entities that are part of an affiliated group and that |
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| 28 | 28 | | provide retail or wholesale electric utilities be disqualified as |
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| 29 | 29 | | members of certain combined groups for purposes of the franchise |
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| 30 | 30 | | tax. |
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| 31 | 31 | | SECTION 3. This Act applies only to a report originally due |
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| 32 | 32 | | on or after January 1, 2014. |
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| 33 | 33 | | SECTION 4. This Act takes effect September 1, 2013. |
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