Texas 2013 - 83rd Regular

Texas House Bill HB3111 Compare Versions

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1	1	83R24934 KLA-F
2	2	By: Hilderbran, Menendez, H.B. No. 3111
3	3	N. Gonzalez of El Paso
4	4	Substitute the following for H.B. No. 3111:
5	5	By: Hilderbran C.S.H.B. No. 3111
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to tax credits for the certified rehabilitation of
11	11	certified historic structures.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Chapter 171, Tax Code, is amended by adding
14	14	Subchapter S to read as follows:
15	15	SUBCHAPTER S. TAX CREDIT FOR CERTIFIED REHABILITATION OF CERTIFIED
16	16	HISTORIC STRUCTURES
17	17	Sec. 171.901. DEFINITIONS. In this subchapter:
18	18	(1) "Certified historic structure" means a property in
19	19	this state that is:
20	20	(A) listed individually in the National Register
21	21	of Historic Places;
22	22	(B) designated as a Recorded Texas Historic
23	23	Landmark under Section 442.006, Government Code, or as a state
24	24	archeological landmark under Chapter 191, Natural Resources Code;
25	25	or
26	26	(C) certified by the commission as contributing
27	27	to the historic significance of:
28	28	(i) a historic district listed in the
29	29	National Register of Historic Places; or
30	30	(ii) a local district certified by the
31	31	United States Department of the Interior in accordance with 36
32	32	C.F.R. Section 67.9.
33	33	(2) "Certified rehabilitation" means the
34	34	rehabilitation of a certified historic structure that the
35	35	commission has certified as meeting the United States secretary of
36	36	the interior's Standards for Rehabilitation as defined in 36 C.F.R.
37	37	Section 67.7.
38	38	(3) "Commission" means the Texas Historical
39	39	Commission.
40	40	(4) "Eligible costs and expenses" means qualified
41	41	rehabilitation expenditures as defined by Section 47(c)(2),
42	42	Internal Revenue Code.
43	43	Sec. 171.902. ELIGIBILITY FOR CREDIT. An entity is
44	44	eligible to apply for a credit in the amount and under the
45	45	conditions and limitations provided by this subchapter against the
46	46	tax imposed under this chapter.
47	47	Sec. 171.903. QUALIFICATION. An entity is eligible for a
48	48	credit for eligible costs and expenses incurred in the certified
49	49	rehabilitation of a certified historic structure as provided by
50	50	this subchapter if:
51	51	(1) the rehabilitated certified historic structure is
52	52	placed in service on or after September 1, 2013;
53	53	(2) the entity has an ownership interest in the
54	54	certified historic structure in the year during which the structure
55	55	is placed in service after the rehabilitation; and
56	56	(3) the total amount of the eligible costs and
57	57	expenses incurred exceeds $5,000.
58	58	Sec. 171.904. CERTIFICATION OF ELIGIBILITY. (a) Before
59	59	claiming, selling, or assigning a credit under this subchapter, the
60	60	entity that incurred the eligible costs and expenses in the
61	61	rehabilitation of a certified historic structure must request from
62	62	the commission a certificate of eligibility on which the commission
63	63	certifies that the work performed meets the definition of a
64	64	certified rehabilitation. The entity must include with the
65	65	entity's request:
66	66	(1) information on the property that is sufficient for
67	67	the commission to determine whether the property meets the
68	68	definition of a certified historic structure; and
69	69	(2) information on the rehabilitation, and
70	70	photographs before and after work is performed, sufficient for the
71	71	commission to determine whether the rehabilitation meets the United
72	72	States secretary of the interior's Standards for Rehabilitation as
73	73	defined in 36 C.F.R. Section 67.7.
74	74	(b) The commission shall issue a certificate of eligibility
75	75	to an entity that has incurred eligible costs and expenses as
76	76	provided by this subchapter. The certificate must:
77	77	(1) confirm that:
78	78	(A) the property to which the eligible costs and
79	79	expenses relate is a certified historic structure; and
80	80	(B) the rehabilitation qualifies as a certified
81	81	rehabilitation; and
82	82	(2) specify the date the certified historic structure
83	83	was first placed in service after the rehabilitation.
84	84	(c) The entity must forward the certificate of eligibility
85	85	and the following documentation to the comptroller to claim the tax
86	86	credit:
87	87	(1) an audited cost report issued by a certified
88	88	public accountant, as defined by Section 901.002, Occupations Code,
89	89	that itemizes the eligible costs and expenses incurred in the
90	90	certified rehabilitation of the certified historic structure by the
91	91	entity;
92	92	(2) the date the certified historic structure was
93	93	first placed in service after the rehabilitation and evidence of
94	94	that placement in service; and
95	95	(3) an attestation of the total eligible costs and
96	96	expenses incurred by the entity on the rehabilitation of the
97	97	certified historic structure.
98	98	(d) For purposes of approving the tax credit under
99	99	Subsection (c), the comptroller may rely on the audited cost report
100	100	provided by the entity that requested the tax credit.
101	101	(e) An entity that sells or assigns a credit under this
102	102	subchapter to another entity shall provide a copy of the
103	103	certificate of eligibility, together with the audited cost report,
104	104	to the purchaser or assignee.
105	105	Sec. 171.905. AMOUNT OF CREDIT; LIMITATIONS. (a) The total
106	106	amount of the credit under this subchapter with respect to the
107	107	rehabilitation of a single certified historic structure that may be
108	108	claimed may not exceed 25 percent of the total eligible costs and
109	109	expenses incurred in the certified rehabilitation of the certified
110	110	historic structure.
111	111	(b) The total credit claimed for a report, including the
112	112	amount of any carryforward under Section 171.906, may not exceed
113	113	the amount of franchise tax due for the report after any other
114	114	applicable tax credits.
115	115	(c) Eligible costs and expenses may only be counted once in
116	116	determining the amount of the tax credit available, and more than
117	117	one entity may not claim a credit for the same eligible costs and
118	118	expenses.
119	119	Sec. 171.906. CARRYFORWARD. (a) If an entity is eligible
120	120	for a credit that exceeds the limitation under Section 171.905(b),
121	121	the entity may carry the unused credit forward for not more than
122	122	five consecutive reports.
123	123	(b) A carryforward is considered the remaining portion of a
124	124	credit that cannot be claimed in the current year because of the
125	125	limitation under Section 171.905(b).
126	126	Sec. 171.907. APPLICATION FOR CREDIT. (a) An entity must
127	127	apply for a credit under this subchapter on or with the report for
128	128	the period for which the credit is claimed.
129	129	(b) An entity shall file with any report on which the credit
130	130	is claimed a copy of the certificate of eligibility issued by the
131	131	commission under Section 171.904 and any other information required
132	132	by the comptroller to sufficiently demonstrate that the entity is
133	133	eligible for the credit.
134	134	(c) The burden of establishing eligibility for and the value
135	135	of the credit is on the entity.
136	136	Sec. 171.908. SALE OR ASSIGNMENT OF CREDIT. (a) An entity
137	137	that incurs eligible costs and expenses may sell or assign all or
138	138	part of the credit that may be claimed for those costs and expenses
139	139	to one or more entities, and any entity to which all or part of the
140	140	credit is sold or assigned may sell or assign all or part of the
141	141	credit to another entity. There is no limit on the total number of
142	142	transactions for the sale or assignment of all or part of the total
143	143	credit authorized under this subchapter, however, collectively all
144	144	transfers are subject to the maximum total limits provided by
145	145	Section 171.905.
146	146	(b) An entity that sells or assigns a credit under this
147	147	section and the entity to which the credit is sold or assigned shall
148	148	jointly submit written notice of the sale or assignment to the
149	149	comptroller on a form promulgated by the comptroller not later than
150	150	the 30th day after the date of the sale or assignment. The notice
151	151	must include:
152	152	(1) the date of the sale or assignment;
153	153	(2) the amount of the credit sold or assigned;
154	154	(3) the names and federal tax identification numbers
155	155	of the entity that sold or assigned the credit or part of the credit
156	156	and the entity to which the credit or part of the credit was sold or
157	157	assigned; and
158	158	(4) the amount of the credit owned by the selling or
159	159	assigning entity before the sale or assignment, and the amount the
160	160	selling or assigning entity retained, if any, after the sale or
161	161	assignment.
162	162	(c) The sale or assignment of a credit in accordance with
163	163	this section does not extend the period for which a credit may be
164	164	carried forward and does not increase the total amount of the credit
165	165	that may be claimed. After an entity claims a credit for eligible
166	166	costs and expenses, another entity may not use the same costs and
167	167	expenses as the basis for claiming a credit.
168	168	(d) Notwithstanding the requirements of this subchapter, a
169	169	credit earned or purchased by, or assigned to, a partnership,
170	170	limited liability company, S corporation, or other pass-through
171	171	entity may be allocated to the partners, members, or shareholders
172	172	of that entity and claimed under this subchapter in accordance with
173	173	the provisions of any agreement among the partners, members, or
174	174	shareholders and without regard to the ownership interest of the
175	175	partners, members, or shareholders in the rehabilitated certified
176	176	historic structure, provided that the entity that claims the credit
177	177	must be subject to the tax imposed under this chapter.
178	178	Sec. 171.909. RULES. The commission and the comptroller
179	179	shall adopt rules necessary to implement this subchapter.
180	180	SECTION 2. Subtitle B, Title 3, Insurance Code, is amended
181	181	by adding Chapter 232 to read as follows:
182	182	CHAPTER 232. PREMIUM TAX CREDIT FOR CERTIFIED REHABILITATION OF
183	183	CERTIFIED HISTORIC STRUCTURES
184	184	Sec. 232.001. DEFINITIONS. In this chapter:
185	185	(1) "Certified historic structure" means a property in
186	186	this state that is:
187	187	(A) listed individually in the National Register
188	188	of Historic Places;
189	189	(B) designated as a Recorded Texas Historic
190	190	Landmark under Section 442.006, Government Code, or as a state
191	191	archeological landmark under Chapter 191, Natural Resources Code;
192	192	or
193	193	(C) certified by the commission as contributing
194	194	to the historic significance of:
195	195	(i) a historic district listed in the
196	196	National Register of Historic Places; or
197	197	(ii) a local district certified by the
198	198	United States Department of the Interior in accordance with 36
199	199	C.F.R. Section 67.9.
200	200	(2) "Certified rehabilitation" means the
201	201	rehabilitation of a certified historic structure that the
202	202	commission has certified as meeting the United States secretary of
203	203	the interior's Standards for Rehabilitation as defined in 36 C.F.R.
204	204	Section 67.7.
205	205	(3) "Commission" means the Texas Historical
206	206	Commission.
207	207	(4) "Eligible costs and expenses" means qualified
208	208	rehabilitation expenditures as defined by Section 47(c)(2),
209	209	Internal Revenue Code of 1986.
210	210	(5) "State premium tax liability" means any liability
211	211	incurred by an entity under Chapter 221, 222, 223, or 224.
212	212	Sec. 232.002. ELIGIBILITY FOR CREDIT. An entity is
213	213	eligible to apply for a credit against state premium tax liability
214	214	on a report in the amount and under the conditions and limitations
215	215	provided by this chapter.
216	216	Sec. 232.003. QUALIFICATION. An entity is eligible to
217	217	apply for a credit for eligible costs and expenses incurred in the
218	218	certified rehabilitation of a certified historic structure as
219	219	provided by this chapter if:
220	220	(1) the rehabilitated certified historic structure is
221	221	placed in service on or after September 1, 2013;
222	222	(2) the entity has an ownership interest in the
223	223	certified historic structure in the year during which the structure
224	224	is placed in service after the rehabilitation; and
225	225	(3) the total amount of the eligible costs and
226	226	expenses incurred exceeds $5,000.
227	227	Sec. 232.004. CERTIFICATION OF ELIGIBILITY. (a) Before
228	228	claiming, selling, or assigning a credit under this chapter, the
229	229	entity that incurred the eligible costs and expenses in the
230	230	rehabilitation of a certified historic structure must request from
231	231	the commission a certificate of eligibility on which the commission
232	232	certifies that the work performed meets the definition of a
233	233	certified rehabilitation. The entity must include with the
234	234	entity's request:
235	235	(1) information on the property that is sufficient for
236	236	the commission to determine whether the property meets the
237	237	definition of a certified historic structure; and
238	238	(2) information on the rehabilitation, and
239	239	photographs before and after work is performed, sufficient for the
240	240	commission to determine whether the rehabilitation meets the United
241	241	States secretary of the interior's Standards for Rehabilitation as
242	242	defined in 36 C.F.R. Section 67.7.
243	243	(b) The commission shall issue a certificate of eligibility
244	244	to an entity that has incurred eligible costs and expenses as
245	245	provided by this subchapter. The certificate must:
246	246	(1) confirm that:
247	247	(A) the property to which the eligible costs and
248	248	expenses relate is a certified historic structure; and
249	249	(B) the rehabilitation qualifies as a certified
250	250	rehabilitation; and
251	251	(2) specify the date the certified historic structure
252	252	was first placed in service after the rehabilitation.
253	253	(c) The entity must forward the certificate of eligibility
254	254	and the following documentation to the comptroller to claim the tax
255	255	credit:
256	256	(1) an audited cost report issued by a certified
257	257	public accountant, as defined by Section 901.002, Occupations Code,
258	258	that itemizes the eligible costs and expenses incurred in the
259	259	certified rehabilitation of the certified historic structure by the
260	260	entity;
261	261	(2) the date the certified historic structure was
262	262	first placed in service after the rehabilitation and evidence of
263	263	that placement in service; and
264	264	(3) an attestation of the total eligible costs and
265	265	expenses incurred by the entity on the rehabilitation of the
266	266	certified historic structure.
267	267	(d) For purposes of approving the tax credit under
268	268	Subsection (c), the comptroller may rely on the audited cost report
269	269	provided by the entity that requested the tax credit.
270	270	(e) An entity that sells or assigns a credit under this
271	271	chapter to another entity shall provide a copy of the certificate of
272	272	eligibility, together with the audited cost report, to the
273	273	purchaser or assignee.
274	274	Sec. 232.005. AMOUNT OF CREDIT; LIMITATIONS. (a) The total
275	275	amount of the credit under this chapter with respect to the
276	276	rehabilitation of a single certified historic structure that may be
277	277	claimed may not exceed 25 percent of the total eligible costs and
278	278	expenses incurred in the certified rehabilitation of the certified
279	279	historic structure.
280	280	(b) The total credit that may be applied for in a report,
281	281	including the amount of any carryforward under Section 232.006, may
282	282	not exceed the amount of state premium tax liability for the report
283	283	after any other applicable tax credits.
284	284	(c) Eligible costs and expenses may only be counted once in
285	285	determining the amount of the tax credit available, and more than
286	286	one entity may not claim a credit for the same eligible costs and
287	287	expenses.
288	288	Sec. 232.006. CARRYFORWARD. (a) If an entity is eligible
289	289	for a credit that exceeds the limitation under Section 232.005(b),
290	290	the entity may carry the unused credit forward for not more than
291	291	five consecutive reports.
292	292	(b) A carryforward is considered the remaining portion of a
293	293	credit that cannot be claimed in the current year because of the
294	294	limitation under Section 232.005(b).
295	295	Sec. 232.007. APPLICATION FOR CREDIT. (a) An entity must
296	296	apply for a credit under this chapter on or with the report for the
297	297	period for which the credit is claimed.
298	298	(b) An entity shall file with any report on which the credit
299	299	is claimed a copy of the certificate of eligibility issued by the
300	300	commission under Section 232.004 and any other information required
301	301	by the comptroller to sufficiently demonstrate that the entity is
302	302	eligible for the credit.
303	303	(c) The burden of establishing entitlement to and the value
304	304	of the credit is on the entity.
305	305	Sec. 232.008. SALE OR ASSIGNMENT OF CREDIT. (a) An entity
306	306	that incurs eligible costs and expenses may sell or assign all or
307	307	part of the credit that may be claimed for those costs and expenses
308	308	to one or more entities, and any entity to which all or part of the
309	309	credit is sold or assigned may sell or assign all or part of the
310	310	credit to another entity. There is no limit on the total number of
311	311	transactions for the sale or assignment of all or part of the total
312	312	credit authorized under this chapter, however, collectively all
313	313	transfers are subject to the maximum total limits provided by
314	314	Section 232.005.
315	315	(b) An entity that sells or assigns a credit under this
316	316	section and the entity to which the credit is sold or assigned shall
317	317	jointly submit written notice of the sale or assignment to the
318	318	comptroller on a form promulgated by the comptroller not later than
319	319	the 30th day after the date of the sale or assignment. The notice
320	320	must include:
321	321	(1) the date of the sale or assignment;
322	322	(2) the amount of the credit sold or assigned;
323	323	(3) the names and federal tax identification numbers
324	324	of the entity that sold or assigned the credit or part of the credit
325	325	and the entity to which the credit or part of the credit was sold or
326	326	assigned; and
327	327	(4) the amount of the credit owned by the selling or
328	328	assigning entity before the sale or assignment, and the amount the
329	329	selling or assigning entity retained, if any, after the sale or
330	330	assignment.
331	331	(c) The sale or assignment of a credit in accordance with
332	332	this section does not extend the period for which a credit may be
333	333	carried forward and does not increase the total amount of the credit
334	334	that may be claimed. After an entity claims a credit for eligible
335	335	costs and expenses, another entity may not use the same costs and
336	336	expenses as the basis for claiming a credit.
337	337	(d) Notwithstanding the requirements of this chapter, a
338	338	credit earned or purchased by, or assigned to, a partnership,
339	339	limited liability company, S corporation, or other pass-through
340	340	entity may be allocated to the partners, members, or shareholders
341	341	of that entity and claimed under this chapter in accordance with the
342	342	provisions of any agreement among the partners, members, or
343	343	shareholders and without regard to the ownership interest of the
344	344	partners, members, or shareholders in the rehabilitated certified
345	345	historic structure, provided that the entity that claims the credit
346	346	must be subject to the tax imposed under Chapter 221, 222, 223, or
347	347	224.
348	348	Sec. 232.009. RETALIATORY TAX. An entity that claims a
349	349	credit under this chapter is not required to pay any additional
350	350	retaliatory tax levied under Chapter 281 as a result of the credit.
351	351	Sec. 232.010. RULES. The commission and the comptroller
352	352	shall adopt rules necessary to implement this chapter.
353	353	SECTION 3. This Act applies only to a report originally due
354	354	on or after the effective date of this Act.
355	355	SECTION 4. This Act takes effect September 1, 2013.