84R2006 BEF-F
By: Lozano H.B. No. 1928
A BILL TO BE ENTITLED
AN ACT
relating to franchise tax and insurance premium tax credits for
investment in certain communities; imposing a monetary penalty;
authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Tax Code, is amended by adding Subtitle
K to read as follows:
SUBTITLE K. CREDITS APPLICABLE TO MULTIPLE TAXES
CHAPTER 221. FRANCHISE TAX AND INSURANCE PREMIUM TAX CREDITS FOR
INVESTMENT IN CERTAIN COMMUNITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 221.001. GENERAL DEFINITIONS. In this chapter:
(1) "Applicable percentage" means zero percent for the
first two credit allowance dates, seven percent for the third
credit allowance date, and eight percent for the next four credit
allowance dates.
(2) "Credit allowance date" means, with respect to any
qualified equity investment:
(A) the date on which the investment is initially
made; and
(B) the anniversary of that date in each of the
six years immediately following that date.
(3) "Federal tax regulations" means regulations
adopted under the Internal Revenue Code of 1986 that are applicable
to the tax year to which the provisions of the code in effect on
September 1, 2015, applied.
(4) "Franchise tax" means the tax imposed under
Chapter 171.
(5) "Internal Revenue Code" means the Internal Revenue
Code of 1986 in effect on September 1, 2015, excluding any changes
made by federal law after that date, but including any regulations
adopted under that code that are applicable to the tax year to which
the provisions of the code in effect on that date applied.
(6) "Purchase price" means the amount paid to the
issuer of a qualified equity investment for the qualified equity
investment, including any underwriter's fees.
(7) "State premium tax liability" means any premium
tax liability incurred under Chapter 221, 222, 223, 223A, or 224,
Insurance Code.
(8) "Taxable entity" has the meaning assigned by
Section 171.0002.
Sec. 221.002. DEFINITION: LONG-TERM DEBT SECURITY. (a) In
this chapter, "long-term debt security" means a debt instrument
issued by a qualified community development entity, at par value or
a premium, with an original maturity date not earlier than the
seventh year after the date on which the debt instrument is issued,
with no acceleration of repayment, amortization, or prepayment
features before its original maturity date.
(b) The qualified community development entity that issues
a long-term debt security may not make cash interest payments on the
security during the period beginning on the date on which the
security is issued and ending on the final credit allowance date in
an amount that exceeds the cumulative operating income, as defined
by federal tax regulations adopted under Section 45D, Internal
Revenue Code, of the qualified community development entity for
that period before giving effect to the interest expense of the
long-term debt security.
(c) This section does not limit the holder's ability to
accelerate payments on a long-term debt security in situations in
which the issuer has defaulted on covenants designed to ensure
compliance with this chapter or Section 45D, Internal Revenue Code.
Sec. 221.003. DEFINITION: QUALIFIED ACTIVE LOW-INCOME
COMMUNITY BUSINESS. (a) In this chapter, "qualified active
low-income community business" has the meaning assigned by Section
45D, Internal Revenue Code, and Section 1.45D-1 of the federal tax
regulations.
(b) A business is considered a qualified active low-income
community business for the duration of the qualified community
development entity's investment in, or loan to, the business if the
entity reasonably expects, at the time it makes the investment or
loan, that the business will continue to satisfy the requirements
for being a qualified active low-income community business
throughout the entire period of the investment or loan.
Sec. 221.004. DEFINITION: QUALIFIED COMMUNITY DEVELOPMENT
ENTITY. In this chapter, "qualified community development entity"
has the meaning assigned by Section 45D, Internal Revenue Code,
provided that the entity has entered into, for the current year or
any prior year, an allocation agreement with the community
development financial institutions fund of the United States
Department of the Treasury with respect to credits authorized by
Section 45D, Internal Revenue Code, that includes this state in the
service area specified in the allocation agreement. The term
includes a qualified community development entity that is
controlled by or under common control with another qualified
community development entity described by this section.
Sec. 221.005. DEFINITION: QUALIFIED EQUITY INVESTMENT. (a)
An investment or security is a "qualified equity investment" for
purposes of this chapter if:
(1) the investment or security is an equity investment
in, or long-term debt security issued by, a qualified community
development entity;
(2) the investment or security is acquired on or after
October 1, 2015, at its original issuance solely in exchange for
cash, except as provided by Subsection (b);
(3) not later than the second anniversary of the date
of issuance at least 85 percent of the investment's or security's
purchase price is used by the issuer to make qualified low-income
community investments in this state; and
(4) the investment or security is designated by the
issuer as a qualified equity investment under this section and is
certified by the comptroller as not exceeding the limitations
provided by Section 221.154.
(b) A qualified equity investment includes an investment or
security that does not satisfy the requirements of Subsection
(a)(2) if the investment or security was a qualified equity
investment in the hands of a prior holder.
Sec. 221.006. DEFINITION: QUALIFIED INVESTOR. In this
chapter, "qualified investor" means an entity that invests in a
qualified equity investment.
Sec. 221.007. DEFINITION: QUALIFIED LOW-INCOME COMMUNITY
INVESTMENT. In this chapter, "qualified low-income community
investment" means a capital or equity investment in, or loan to, a
qualified active low-income community business made by a qualified
community development entity.
Sec. 221.008. RULES. The comptroller shall adopt rules
necessary to implement this chapter.
Sec. 221.009. AUDIT BY COMPTROLLER. The comptroller shall
review or audit the investments of a qualified community
development entity on a periodic basis. In conducting the review or
audit, the comptroller shall ensure that the qualified community
development entity has made and maintained the investment required
under Section 221.201(a)(3) to avoid recapture of a credit claimed
in connection with a qualified equity investment.
Sec. 221.010. ELECTION OF CREDIT. (a) A qualified investor
or a subsequent holder of a qualified equity investment may not
claim a credit under both Subchapters B and C for the amount of
credit accrued on a credit allowance date.
(b) A qualified investor or a subsequent holder of a
qualified equity investment who qualifies for a credit under both
Subchapters B and C for the amount of credit accrued on a credit
allowance date shall:
(1) elect under which subchapter to claim a credit for
the amount of credit accrued on that date; and
(2) notify the comptroller of that election.
(c) The limitation specified by Subsection (a) and the
election required by Subsection (b) do not apply to a credit
carryforward under Section 221.054 or 221.104.
SUBCHAPTER B. FRANCHISE TAX CREDIT
Sec. 221.051. ELIGIBILITY FOR CREDIT. Subject to Section
221.010, a taxable entity is eligible for a credit against the tax
imposed under Chapter 171 in the amount provided by this subchapter
and under the conditions and limitations provided by this chapter.
Sec. 221.052. QUALIFICATION. A taxable entity is eligible
for a credit if the taxable entity is:
(1) a qualified investor who holds a qualified equity
investment on a credit allowance date; or
(2) a subsequent holder of a qualified equity
investment who holds the investment on a credit allowance date.
Sec. 221.053. AMOUNT OF CREDIT; LIMITATION. (a) The amount
of credit for a report is equal to the credit accrued, as determined
under Subsection (b), on each credit allowance date:
(1) that occurs during the period on which the report
is based; and
(2) on which the taxable entity holds the qualified
equity investment.
(b) The amount of credit accrued on a credit allowance date
equals the applicable percentage for the credit allowance date
multiplied by the purchase price paid to the issuer of the qualified
equity investment.
(c) The total credit claimed for a report, including the
amount of any carryforward under Section 221.054, may not exceed
the amount of franchise tax due for the report after applying all
other applicable tax credits.
Sec. 221.054. CARRYFORWARD. If a taxable entity is
eligible for a credit that exceeds the limitation under Section
221.053(c), the taxable entity may carry the unused credit forward
for not more than 20 consecutive reports. Credits, including
credit carryforwards, are considered to be used in the following
order:
(1) a credit carryforward under this subchapter; and
(2) a current year credit.
Sec. 221.055. BURDEN OF ESTABLISHING CREDIT. The burden of
establishing entitlement to and the value of the credit is on the
taxable entity.
Sec. 221.056. ASSIGNMENT PROHIBITED. A taxable entity may
not convey, assign, or transfer the credit allowed under this
subchapter to another entity.
Sec. 221.057. APPLICATION FOR CREDIT. A taxable entity
must apply for a credit under this subchapter on or with the tax
report for the period for which the credit is claimed.
SUBCHAPTER C. INSURANCE PREMIUM TAX CREDIT
Sec. 221.101. ELIGIBILITY FOR CREDIT. Subject to Section
221.010, an entity is eligible for a credit against the entity's
state premium tax liability in the amount provided by this
subchapter and under the conditions and limitations provided by
this chapter.
Sec. 221.102. QUALIFICATION. An entity is eligible for a
credit if the entity is:
(1) a qualified investor who holds a qualified equity
investment on a credit allowance date; or
(2) a subsequent holder of a qualified equity
investment who holds the investment on a credit allowance date.
Sec. 221.103. AMOUNT OF CREDIT; LIMITATION. (a) The amount
of credit for a tax year is equal to the credit accrued, as
determined under Subsection (b), on each credit allowance date:
(1) that occurs during the tax year; and
(2) on which the entity holds the qualified equity
investment.
(b) The amount of credit accrued on a credit allowance date
equals the applicable percentage for the credit allowance date
multiplied by the purchase price paid to the issuer of the qualified
equity investment.
(c) The total credit claimed for a tax year, including the
amount of any carryforward under Section 221.104, may not exceed
the amount of state premium tax liability due for the tax year after
applying all other applicable tax credits.
Sec. 221.104. CARRYFORWARD. If an entity is eligible for a
credit that exceeds the limitation under Section 221.103(c), the
entity may carry the unused credit forward for not more than 20
consecutive tax reports. Credits, including credit carryforwards,
are considered to be used in the following order:
(1) a credit carryforward under this subchapter; and
(2) a current year credit.
Sec. 221.105. BURDEN OF ESTABLISHING CREDIT. The burden of
establishing entitlement to and the value of the credit is on the
entity.
Sec. 221.106. ASSIGNMENT PROHIBITED. An entity may not
convey, assign, or transfer the credit allowed under this
subchapter to another entity.
Sec. 221.107. APPLICATION FOR CREDIT. An entity must apply
for a credit under this subchapter on or with the tax report for the
tax year for which the credit is claimed.
Sec. 221.108. RETALIATORY TAX. (a) An entity claiming a
credit under this subchapter is not required to pay any additional
retaliatory tax levied under Chapter 281, Insurance Code, as a
result of claiming that credit.
(b) In addition to the exclusion provided by Subsection (a),
an entity claiming a credit under this subchapter is not required to
pay any additional tax that may arise as a result of claiming that
credit.
SUBCHAPTER D. CERTIFICATION AS QUALIFIED EQUITY INVESTMENT
Sec. 221.151. APPLICATION FOR CERTIFICATION AS QUALIFIED
EQUITY INVESTMENT. (a) A qualified community development entity
that seeks to have an equity investment or long-term debt security
certified as a qualified equity investment eligible for credits
under this chapter must apply to the comptroller as provided by this
section.
(b) An application under this section must include the
following:
(1) evidence of the applicant's certification as a
qualified community development entity, including evidence of the
service area of the entity that includes this state;
(2) a copy of an allocation agreement executed by the
applicant, or its controlling entity, and the community development
financial institutions fund of the United States Department of the
Treasury;
(3) a certificate executed by an executive officer of
the applicant attesting that the allocation agreement remains in
effect and has not been revoked or canceled by the community
development financial institutions fund;
(4) a description of the amount and structure of the
equity investment or long-term debt security proposed to be
certified;
(5) examples of the types of qualified active
low-income community businesses in which the applicant, its
controlling entity, or affiliates of its controlling entity have
invested under the federal New Markets Tax Credit Program;
(6) a nonrefundable application fee of $5,000 to be
paid to the comptroller; and
(7) the refundable performance deposit required by
Subchapter F.
Sec. 221.152. ACTION ON APPLICATION. (a) Not later than
the 30th day after the date an application under Section 221.151 is
received, the comptroller shall grant or deny the application in
full or part.
(b) If the comptroller denies the application, the
comptroller shall inform the applicant of the denial.
Sec. 221.153. CERTIFICATION OF QUALIFIED EQUITY
INVESTMENT. (a) If an application under Section 221.151 is
granted, the comptroller shall certify the proposed equity
investment or long-term debt security as a qualified equity
investment that is eligible for credits under this chapter, subject
to Section 221.154.
(b) The comptroller shall provide written notice of the
certification to the qualified community development entity.
Sec. 221.154. LIMIT ON CERTIFIED INVESTMENTS. (a) Subject
to Subsection (b), not more than $250 million in qualified equity
investments may be certified under Section 221.153.
(b) The comptroller shall allocate at least 50 percent of
the amount available under Subsection (a) to certify applications
from applicants that:
(1) have an allocation agreement with the community
development financial institutions fund of the United States
Department of the Treasury that requires the applicant to invest at
least 50 percent of the applicant's qualified equity investments in
nonmetropolitan areas; and
(2) will invest the amount certified in census tracts
that are not part of a metropolitan statistical area or
municipality with a population of more than 50,000.
(c) Subject to Subsection (d), if a pending application
cannot be fully certified due to the limit under Subsection (a) or
(b), the comptroller shall certify the portion that can be
certified.
(d) The comptroller shall certify qualified equity
investments in the order in which applications are received by the
comptroller. Applications received on the same day are considered
to have been received simultaneously. For applications that are
complete and received on the same day and for which the total
amounts requested cannot be certified because of the limit
specified by Subsection (a) or (b), the comptroller shall certify,
consistent with remaining qualified equity investment capacity,
the qualified equity investments in proportionate percentages
based on the proportion that the amount of qualified equity
investment requested in an application bears to the total amount of
qualified equity investments requested in all applications
received on the same day.
Sec. 221.155. TRANSFER OF INVESTMENT AUTHORITY. A
qualified community development entity whose application for
certification of a qualified equity investment is approved under
this subchapter may transfer all or a portion of its certified
qualified equity investment authority to its controlling entity or
to a qualified community development entity controlled by or under
common control with the transferring entity, if the transferring
entity:
(1) provides the information required in the
application under Section 221.151(b) with respect to the recipient
of the transfer; and
(2) notifies the comptroller of the transfer not later
than the 30th day after the date of the transfer.
Sec. 221.156. ISSUANCE OF QUALIFIED EQUITY INVESTMENT; FEE.
(a) Not later than the second anniversary of the date the qualified
community development entity receives notice of certification, the
entity or a recipient of a transfer under Section 221.155 shall
issue the qualified equity investment and receive cash in the
amount certified.
(b) The qualified community development entity or a
recipient of a transfer under Section 221.155 must provide the
comptroller with evidence of the receipt of the cash investment not
later than the 10th business day after the date the cash investment
is received.
(c) At the time the qualified community development entity
or a recipient of a transfer under Section 221.155 issues the
qualified equity investment, the qualified community development
entity or transfer recipient shall pay to the comptroller a fee
equal to 20 basis points of the amount issued. Fees collected under
this subsection may be appropriated only to pay the cost of
preparing a report under Section 221.352.
Sec. 221.157. LAPSE OF CERTIFICATION. (a) If the qualified
community development entity or a recipient of a transfer under
Section 221.155 does not issue the qualified equity investment and
receive the cash investment before the second anniversary of the
date the certification notice is received as required by Section
221.156, the certification lapses and the qualified community
development entity or recipient of the transfer may not accept an
equity investment or issue a long-term debt security as a qualified
equity investment without reapplying to the comptroller for
certification.
(b) If a certification lapses under this section, the
comptroller shall reissue the previously certified amount, giving
preference to an applicant for reissuance of certification whose
proposed amount for certification was previously certified in a
reduced amount under Section 221.154. If more than one applicant
for reissuance of certification had its proposed amount reduced,
the comptroller shall reissue the certified amount to those
applicants in amounts determined by the comptroller, subject to the
limits specified by Section 221.154.
(c) After reissuing certifications under Subsection (b),
the comptroller shall reissue any certified amounts remaining to
applicants in amounts determined by the comptroller, subject to the
limits specified by Section 221.154.
SUBCHAPTER E. RECAPTURE OF CREDIT
Sec. 221.201. RECAPTURE. (a) Subject to Section 221.202,
the comptroller shall recapture the amount of a credit claimed on a
report filed under Chapter 171 or a premium tax report filed under
Chapter 221, 222, 223, 223A, or 224, Insurance Code, from the
qualified investor or a subsequent holder of the qualified equity
investment that claims the credit if:
(1) any amount of a federal tax credit available with
respect to a qualified equity investment that is eligible for a
credit under this chapter is recaptured under Section 45D, Internal
Revenue Code, in which case the comptroller's recapture must be
proportionate to the federal recapture with respect to the
qualified equity investment;
(2) the issuer redeems or makes principal repayment
with respect to a qualified equity investment before the seventh
anniversary of the date the qualified equity investment is issued,
in which case the comptroller's recapture must be proportionate to
the amount of the redemption or repayment with respect to the
qualified equity investment; or
(3) the issuer fails to invest an amount equal to 85
percent of the purchase price of the qualified equity investment in
qualified low-income community investments in this state not later
than the second anniversary of the date the qualified equity
investment is issued, or fails to maintain 85 percent of that level
of investment in qualified low-income community investments in this
state until the last credit allowance date for the qualified equity
investment.
(b) For purposes of this chapter, a qualified low-income
community investment is considered held by an issuer even if the
investment has been sold or repaid if the issuer reinvests an amount
equal to the capital returned to or recovered by the issuer from the
original investment, exclusive of any profits realized, in another
qualified low-income community investment not later than the 12th
month after the date the issuer receives the capital.
(c) An issuer is not required to reinvest capital returned
from a qualified low-income community investment after the sixth
anniversary of the date the qualified equity investment whose
proceeds were used to make the qualified low-income community
investment was issued. The qualified low-income community
investment is considered held by the issuer through the seventh
anniversary of the date the qualified equity investment was issued.
(d) Periodic amounts received during a calendar year as
repayment of principal on a loan that is a qualified low-income
community investment shall be treated as continuously invested in a
qualified low-income community investment if the amounts are
reinvested in one or more qualified low-income community
investments not later than the last day of the following calendar
year.
Sec. 221.202. NOTICE OF NONCOMPLIANCE. (a) The
comptroller shall notify a qualified community development entity
and a qualified investor that has claimed a credit on a report if
the credit is subject to recapture under Section 221.201.
(b) The comptroller may not recapture a credit under this
subchapter if the qualified community development entity cures the
noncompliance described by Section 221.201 before the 90th day
after the date the qualified community development entity receives
notice under Subsection (a).
SUBCHAPTER F. SECURITY FOR PERFORMANCE
Sec. 221.251. SECURITY REQUIRED. Not later than the 14th
day after the date a qualified equity investment is certified under
Subchapter D, the qualified community development entity that
received investment authority for the qualified equity investment
must deposit $500,000 with the comptroller as a refundable
performance deposit to be deposited as required by Section 221.254.
Sec. 221.252. FAILURE TO PROVIDE SECURITY: LOSS OF
CERTIFICATION. The comptroller shall revoke the certification of
the qualified equity investment of a qualified community
development entity that fails to make a deposit under Section
221.251.
Sec. 221.253. FORFEITURE OF SECURITY. (a) A qualified
community development entity that makes a performance deposit under
Section 221.251 forfeits the deposit in its entirety if:
(1) the qualified community development entity and any
qualified community development entity to which a transfer is made
by the qualified community development entity under Section 221.155
fail to issue the total amount of qualified equity investments
certified by the comptroller and receive cash in the amount
certified under Section 221.153 not later than the date specified
by Section 221.156; or
(2) subject to Subsection (b), the qualified community
development entity or a qualified community development entity to
which a transfer is made by the qualified community development
entity under Section 221.155 that issues a qualified equity
investment certified under Section 221.153 fails to make or
maintain the investment required under Section 221.201(a)(3) to
avoid recapture of a tax credit claimed in connection with the
qualified equity investment.
(b) A deposit is not subject to forfeiture under Subsection
(a)(2) if the qualified community development entity cures the
noncompliance before the 90th day after the date the qualified
community development entity receives notice under Subsection (c).
(c) The comptroller shall notify a qualified community
development entity that made a deposit under Section 221.251 if the
deposit is subject to forfeiture under this section.
Sec. 221.254. NEW MARKETS PERFORMANCE GUARANTEE FUND. (a)
The new markets performance guarantee fund is an interest-bearing
fund outside the state treasury with the comptroller. The fund
consists of money the comptroller deposits under Subsection (b).
The comptroller shall administer the fund.
(b) The comptroller shall deposit a performance deposit
made under Section 221.251 to the credit of the new markets
performance guarantee fund. The deposit must remain on deposit with
the fund until the comptroller determines that:
(1) the qualified community development entity has
complied with the provisions of this chapter; or
(2) the deposit has been forfeited and will be
deposited in accordance with Section 221.256.
Sec. 221.255. RELEASE OF SECURITY. (a) Not earlier than
the 30th day after the date the requirements that must be satisfied
to avoid forfeiture of a deposit as described by Section 221.253 are
satisfied, a qualified community development entity that made the
deposit may request a refund of the deposit from the comptroller.
(b) The comptroller shall refund the deposit or, if
applicable, give notice of noncompliance as described by Section
221.253 not later than the 30th day after the date of receiving a
request under Subsection (a).
Sec. 221.256. DEPOSIT OF FORFEITED SECURITY. The
comptroller shall deposit in the general revenue fund a deposit
forfeited under Section 221.253.
SUBCHAPTER G. EVALUATION OF BUSINESS BY COMPTROLLER
Sec. 221.301. EVALUATION REQUIRED. (a) Except as provided
by Subsection (c), a qualified community development entity or a
recipient of a transfer under Section 221.155 must, before making
an investment in a business, request a written opinion from the
comptroller as to whether the business in which the qualified
community development entity proposes to invest would qualify as a
qualified active low-income community business under Section
221.003.
(b) Not later than the 15th business day after the date of
the receipt of a request under Subsection (a), the comptroller
shall determine whether the business is a qualified active
low-income community business, notify the qualified community
development entity of the determination, and provide an explanation
of the determination.
(c) A qualified community development entity or a recipient
of a transfer under Section 221.155 is not required to request a
written opinion under Subsection (a) before making an investment in
a business if the qualified community development entity or
transfer recipient concurrently makes a federal qualified
low-income community investment in the business.
Sec. 221.302. CONSIDERATION OF FEDERAL TAX LAWS. In
issuing a written opinion and making other determinations under
this chapter, the comptroller shall consider Section 45D, Internal
Revenue Code, and the federal tax regulations issued under that
code, to the extent that those provisions are applicable.
SUBCHAPTER H. REPORTING
Sec. 221.351. REPORT TO COMPTROLLER. (a) Except as
provided by this subsection, a qualified community development
entity that issues a qualified equity investment under Section
221.156 shall submit an annual report to the comptroller not later
than the fifth business day after the anniversary of a credit
allowance date applicable to the investment. The qualified
community development entity is not required to submit any report
under this subsection after the annual report following the final
credit allowance date.
(b) The report must:
(1) provide evidence that the qualified community
development entity has made and maintained the investment required
under Section 221.201(a)(3) to avoid recapture of a credit claimed
in connection with the qualified equity investment;
(2) include one or more bank statements for the
qualified community development entity that reflect each qualified
low-income community investment made by the qualified community
development entity in connection with the qualified equity
investment;
(3) state the name, location, and industry code of
each qualified active low-income community business receiving a
qualified low-income community investment in connection with the
qualified equity investment;
(4) state the number of employment positions created
and retained as a result of each qualified low-income community
investment made in connection with the qualified equity investment;
(5) state whether the qualified community development
entity has been subject to a recapture of any amount of a federal
tax credit available under Section 45D, Internal Revenue Code, with
respect to the qualified equity investment; and
(6) include a copy of the most recent annual report
submitted by the qualified community development entity to the
United States Department of the Treasury regarding Section 45D,
Internal Revenue Code.
(c) A qualified community development entity that fails to
submit a report to the comptroller within the time prescribed by
Subsection (a) shall pay to the comptroller a penalty equal to the
sum of:
(1) $25,000; and
(2) $5,000 for each day the report is not submitted
after the date the report is due under Subsection (a).
Sec. 221.352. COMPTROLLER'S REPORT TO THE LEGISLATURE. (a)
The comptroller shall contract with an independent researcher at a
center for research established under Section 1.005, Education
Code, to prepare a biennial report with respect to the
implementation of this chapter.
(b) The report must include:
(1) the number of qualified community development
entities holding certified qualified equity investments;
(2) the amount of qualified equity investments of each
qualified community development entity;
(3) the investments each qualified community
development entity has made in qualified active low-income
community businesses as of the most recent annual report submitted
to the comptroller by the qualified community development entity;
(4) the total amount of credits earned under this
chapter;
(5) the performance of each qualified community
development entity with respect to reporting requirements imposed
by this chapter;
(6) with respect to each qualified active low-income
community business in which a qualified community development
entity has invested:
(A) the classification of the qualified active
low-income community business according to the industrial sector
and the size of the business;
(B) the total number of jobs created by the
qualified low-income community investment and the average wages
paid for the jobs; and
(C) the total number of jobs retained as a result
of the qualified low-income community investment and the average
wages paid for the jobs; and
(7) an analysis of the effect implementation of this
chapter has had during the period covered by the report on:
(A) economic activity in this state; and
(B) state tax revenue.
(c) The comptroller shall file the report with the governor,
the lieutenant governor, and the speaker of the house of
representatives not later than December 15 of each even-numbered
year.
SECTION 2. (a) As soon as practicable after the effective
date of this Act, the comptroller of public accounts shall adopt
rules necessary to implement the provisions of Chapter 221, Tax
Code, as added by this Act.
(b) The comptroller of public accounts shall accept
applications for certification of qualified equity investments as
required by Chapter 221, Tax Code, as added by this Act, beginning
not later than October 2, 2015.
SECTION 3. Subchapter B, Chapter 221, Tax Code, as added by
this Act, applies only to a report under Chapter 171, Tax Code,
originally due on or after January 1, 2016.
SECTION 4. Subchapter C, Chapter 221, Tax Code, as added by
this Act, applies only to a tax report originally due on or after
January 1, 2016.
SECTION 5. This Act takes effect September 1, 2015.