84R10830 CBH-F
By: Bohac H.B. No. 3354
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of certain unused franchise tax credits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 18, Chapter 1 (H.B. 3), Acts of the 79th
Legislature, 3rd Called Session, 2006, is amended by adding
Subsections (h-1), (i-1), (j), and (k) to read as follows:
(h-1) In this subsection and Subsection (i-1) of this
section, "transfer" includes a sale. Notwithstanding Subsections
(e) and (f) of this section and subject to Subsection (k) of this
section, a corporation that had unused credits before January 1,
2008, under former Subchapter P or Q, Chapter 171, Tax Code, that
expired under the terms of one of those former subchapters or under
Subsection (e) or (f) of this section, may transfer the right to the
expired credits to another taxpayer of this state. A transferred
credit is considered to be newly established by the taxpayer to
which the credit is transferred on the date the transfer is
complete. To be eligible to transfer the credits, the corporation
must obtain a certificate of transfer of credit from the
comptroller for the amount of the credits to be transferred. Not
later than the 30th day after the date of the transfer, the
corporation must submit to the comptroller a notice of the transfer
in a form prescribed by the comptroller. The notice must be
accompanied by a copy of the certificate of transfer issued by the
comptroller and specify:
(1) the number on the certificate of transfer;
(2) the amount of the corporation's unused credits
preceding the transfer;
(3) the date of the transfer;
(4) the amount of credits transferred;
(5) the tax identification numbers of the corporation
and the taxpayer to which the credits were transferred;
(6) the corporation's remaining amount of unused
credits after the transfer; and
(7) any other information the comptroller requires.
(i-1) The transfer of a credit under Subsection (h-1) of
this section is limited to an unused credit for which the
corporation was eligible before January 1, 2008, and does not
include credits authorized under former Subchapter Q-1, Chapter
171, Tax Code, or credits that were created under the terms of a
written agreement between a taxpayer and the Texas Department of
Economic Development or its successor that was entered into before
June 1, 2006, and that continue to accrue under the terms provided
by Section 19 of this Act. The transferee of a credit under this
section obtains the credit subject to the same rights and
privileges as the transferor had on the date the credit was
originally established. The transfer of a credit under Subsection
(h-1) of this section does not extend or lessen the period during
which the credit may be claimed after the credit is newly
established by the taxpayer to which the credit is transferred as
provided by that subsection. If a corporation transfers a credit
that the corporation was not entitled to transfer at the time of the
transfer:
(1) the taxpayer to which the credit was transferred
may pursue any remedy authorized by law against the corporation and
may not pursue any remedy against the comptroller or this state; and
(2) the comptroller:
(A) may not allow the taxpayer to which the
credit was transferred to apply the credit on a report for a tax
listed in Subsection (j) of this section; or
(B) shall recover from the taxpayer the amount of
the credit the taxpayer claims on a report using any means
authorized by law.
(j) A taxpayer to which a credit is transferred under
Subsection (h-1) of this section may apply the credit against:
(1) the taxes due under Chapters 151, 152, 154, 155,
156, 158, 160, 161, 162, 171, 181, 182, 183, 191, 201, 202, and 203,
Tax Code; and
(2) a contribution due under Subtitle A, Title 4,
Labor Code.
(k) A corporation may not transfer an unused tax credit
under Subsection (h-1) of this section after August 31, 2017.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2015.