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