| 1 | 1 | | 84R8237 TJB-D |
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| 2 | 2 | | By: Sanford H.B. No. 2427 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a franchise tax credit for taxable entities that pay |
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| 8 | 8 | | tolls and other charges for use of a toll road. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter N to read as follows: |
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| 12 | 12 | | SUBCHAPTER N. TAX CREDIT FOR TOLLS PAID |
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| 13 | 13 | | Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 14 | 14 | | entitled to a credit in the amount and under the conditions and |
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| 15 | 15 | | limitations provided by this subchapter against the tax imposed |
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| 16 | 16 | | under this chapter. |
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| 17 | 17 | | Sec. 171.702. QUALIFICATION. A taxable entity qualifies |
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| 18 | 18 | | for a credit under this subchapter if the taxable entity pays a toll |
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| 19 | 19 | | or other charge imposed for the use of a toll road located in this |
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| 20 | 20 | | state. |
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| 21 | 21 | | Sec. 171.703. AMOUNT; LIMITATIONS. (a) The amount of the |
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| 22 | 22 | | credit is equal to 50 percent of the total amount of tolls and other |
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| 23 | 23 | | charges paid by the taxable entity during a reporting period for the |
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| 24 | 24 | | use of a toll road located in this state. |
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| 25 | 25 | | (b) A taxable entity may not convey, assign, or transfer a |
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| 26 | 26 | | credit under this subchapter to another entity unless all of the |
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| 27 | 27 | | assets of the taxable entity are conveyed, assigned, or transferred |
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| 28 | 28 | | in the same transaction. |
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| 29 | 29 | | Sec. 171.704. APPLICATION FOR CREDIT. A taxable entity |
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| 30 | 30 | | must apply for a credit under this subchapter on or with the tax |
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| 31 | 31 | | report for the period for which the credit is claimed. |
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| 32 | 32 | | Sec. 171.705. RULES. The comptroller shall adopt rules |
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| 33 | 33 | | necessary to implement this subchapter. |
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| 34 | 34 | | SECTION 2. This Act applies only to a report originally due |
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| 35 | 35 | | on or after the effective date of this Act. |
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| 36 | 36 | | SECTION 3. This Act takes effect January 1, 2016. |
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