Texas 2013 - 83rd Regular

Texas House Bill HB2717 Compare Versions

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1	1	83R10347 TJS-F
2	2	By: Eiland H.B. No. 2717
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an insurer that establishes or significantly expands
8	8	physical operations in this state; authorizing a premium tax
9	9	credit.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 3, Insurance Code, is amended
12	12	by adding Chapter 230 to read as follows:
13	13	CHAPTER 230. PREMIUM TAX CREDIT FOR ESTABLISHING OR EXPANDING
14	14	OPERATIONS IN THIS STATE
15	15	Sec. 230.001. TAX CREDIT. The commissioner, with the
16	16	concurrence of the comptroller, may award a premium tax credit to an
17	17	insurer or other person with premium tax liability under this code,
18	18	as provided by this chapter, on determination that:
19	19	(1) the insurer has established or significantly
20	20	expanded physical operations in this state; and
21	21	(2) the establishment or expansion of operations
22	22	described by Subdivision (1) has produced a significant economic
23	23	benefit to this state in the taxable year during which the
24	24	establishment or expansion occurred.
25	25	Sec. 230.002. APPLICABLE TAXES. The tax credit under this
26	26	chapter may be applied to premium tax liability under Chapter 221,
27	27	222, 223, 224, or 225.
28	28	Sec. 230.003. APPLICATION. (a) To receive a premium tax
29	29	credit under this chapter, an insurer must, not earlier than the
30	30	12th month before or later than the 12th month after the activity
31	31	that is the basis of the insurer's eligibility for the credit,
32	32	submit an application to the commissioner and to the comptroller
33	33	detailing the insurer's establishment or significant expansion of
34	34	physical operations in this state, or the insurer's plan to
35	35	establish or expand operations in this state, as applicable, that
36	36	includes information demonstrating that taxes, fees, and other
37	37	sources of revenue to the state associated with the establishment
38	38	or expansion will more than offset foregone premium tax revenue
39	39	under this chapter. The application must include information about
40	40	the new or expanded operations, including:
41	41	(1) the number of new employees hired in this state;
42	42	(2) the purchase price or leasing costs, as
43	43	applicable, of properties located in this state;
44	44	(3) the cost of improvements made to real property
45	45	used in the operation of the business in this state;
46	46	(4) the anticipated wages paid to residents;
47	47	(5) an estimate of all new tax revenues to be paid to
48	48	the state or a political subdivision;
49	49	(6) other economic benefits to the state directly
50	50	related to the new or expanded physical operations; and
51	51	(7) any other evidence to be considered in determining
52	52	whether to allow the premium tax credit.
53	53	(b) The commissioner may approve an application under this
54	54	section only by an order that contains findings related to the net
55	55	anticipated benefit to the state. The order may contain terms that
56	56	limit or modify the insurer's plan or that condition the allowance
57	57	of tax credits on certain subsequent events.
58	58	(c) An insurer that receives a premium tax credit under this
59	59	chapter must submit to the commissioner annual filings that provide
60	60	evidence of the insurer's compliance with any conditions provided
61	61	by the order allowing the credit.
62	62	Sec. 230.004. AMOUNT OF PREMIUM TAX CREDIT. (a) An insurer
63	63	may apply for a premium tax credit under this chapter in an amount
64	64	not to exceed 100 percent of an investment directly related to the
65	65	establishment or significant expansion of physical operations in
66	66	this state.
67	67	(b) The credit against state premium tax liability of an
68	68	insurer in any one year may not exceed the state premium tax
69	69	liability of the insurer for that taxable year.
70	70	Sec. 230.005. TIME PERIOD; LIMITS. (a) If the commissioner
71	71	finds that an insurer qualifies for a premium tax credit under this
72	72	chapter, the commissioner may issue an order granting the credit in
73	73	the amount allowed under Section 230.004 for the taxable year in
74	74	which the premium tax credit was granted.
75	75	(b) The commissioner may grant to an insurer the premium tax
76	76	credit allowed under this chapter for not more than eight taxable
77	77	years.
78	78	(c) Any unused premium tax credit granted for a taxable year
79	79	under this chapter may be carried forward by an insurer against
80	80	state premium tax liability for not more than seven years.
81	81	Sec. 230.006. RECAPTURE AND FORFEITURE OF TAX CREDIT. If
82	82	the commissioner determines that an insurer has failed to comply
83	83	with a condition of the order issued under Section 230.003, the
84	84	commissioner, after notice and an opportunity for hearing, shall
85	85	issue an order requiring:
86	86	(1) the recapture of the premium tax credits
87	87	previously claimed by the insurer; and
88	88	(2) the forfeiture by the insurer of future premium
89	89	tax credits under this chapter.
90	90	Sec. 230.007. RULES; FORMS. The commissioner shall adopt
91	91	rules and forms as necessary to implement this chapter.
92	92	SECTION 2. As soon as practicable after the effective date
93	93	of this Act, the commissioner of insurance shall adopt rules and
94	94	forms as required by Section 230.007, Insurance Code, as added by
95	95	this Act.
96	96	SECTION 3. This Act takes effect September 1, 2013.