84R19919 CJC-F
By: Geren, Bohac H.B. No. 2709
Substitute the following for H.B. No. 2709:
By: Button C.S.H.B. No. 2709
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of property used for a large data center
project for ad valorem tax benefits under the Texas Economic
Development Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 313.021(2), Tax Code, is amended to read
as follows:
(2) "Qualified property" means:
(A) land:
(i) that is located in an area designated as
a reinvestment zone under Chapter 311 or 312 or as an enterprise
zone under Chapter 2303, Government Code;
(ii) on which a person proposes to
construct a new building or erect or affix a new improvement that
does not exist before the date the person submits a complete
application for a limitation on appraised value under this
subchapter;
(iii) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(iv) on which, in connection with the new
building or new improvement described by Subparagraph (ii), the
owner or lessee of, or the holder of another possessory interest in,
the land proposes to:
(a) make a qualified investment in an
amount equal to at least the minimum amount required by Section
313.023; and
(b) create at least 25 new qualifying
jobs;
(B) the new building or other new improvement
described by Paragraph (A)(ii); and
(C) tangible personal property:
(i) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312;
(ii) for which a sales and use tax refund is
not claimed under Section 151.3186; and
(iii) except for new equipment described in
Section 151.318(q) or (q-1), that:
(a) is first placed in service in the
new building, in the newly expanded building, or in or on the new
improvement described by Paragraph (A)(ii), or on the land on which
that new building or new improvement is located, if the personal
property is ancillary and necessary to the business conducted in
that new building or in or on that new improvement; or
(b) is first placed in service in the
new building, in the newly expanded building, or in or on the new
improvement described by Paragraph (A)(ii), or on the land on which
that new building or new improvement is located to replace personal
property described by Sub-subparagraph (a) that has a useful life
of less than five years.
SECTION 2. Section 313.024(b), Tax Code, is amended to read
as follows:
(b) To be eligible for a limitation on appraised value under
this subchapter, the entity must use the property for:
(1) manufacturing;
(2) research and development;
(3) a clean coal project, as defined by Section 5.001,
Water Code;
(4) an advanced clean energy project, as defined by
Section 382.003, Health and Safety Code;
(5) renewable energy electric generation;
(6) electric power generation using integrated
gasification combined cycle technology;
(7) nuclear electric power generation;
(8) a computer center primarily used in connection
with one or more activities described by Subdivisions (1) through
(7) conducted by the entity; [or]
(9) a Texas priority project; or
(10) a large data center project as defined by Section
151.3595.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.