83R12348 KLA-F
By: Alvarado H.B. No. 2941
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 performed in
conjunction with institutions of higher education.
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. CERTAIN PROPERTY AND SERVICES USED IN
RESEARCH AND DEVELOPMENT ACTIVITIES. (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) "Public or private institution of higher
education" means:
(A) an institution of higher education, as
defined by Section 61.003, Education Code; or
(B) a private or independent institution of
higher education, as defined by Section 61.003, Education Code.
(3) "Qualified research" and "qualified service" have
the meanings assigned by Section 41, Internal Revenue Code.
(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 person engaged in qualified
research under contracts with one or more public or private
institutions of higher education.
SECTION 2. Section 151.3182, 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.