Relating to the creation of research technology corporations for the development and commercialization of technologies owned by institutions of higher education or by certain medical centers with members that are institutions of higher education; providing for tax exemptions; providing a penalty.
Impact
The impact of HB 590 is multifaceted, as it is expected to change state laws related to the creation and operation of research technology corporations. By offering tax exemptions from ad valorem taxes, sales and use taxes, and franchise taxes, the bill incentivizes institutions to engage in technological development. This could lead to significant economic growth by increasing competitiveness in relevant sectors, essentially positioning Texas as a more favorable environment for research and development activities. Thus, the bill may also prompt other states to evaluate and adapt their regulations to maintain competitive parity.
Summary
House Bill 590 aims to create university research technology corporations that are designed to facilitate the development and commercialization of technologies developed by institutions of higher education and certain medical centers. The legislation outlines the structure and operational requirements for these corporations, including licensing provisions and compliance regulations necessary to qualify for tax exemptions. By enabling institutions to create these specialized corporations, the bill is positioned as a means to enhance innovation and economic development within Texas, specifically around the commercialization of scientific research and technological advancements.
Sentiment
Overall, the sentiment surrounding HB 590 reflects a generally positive outlook among supporters, particularly within the higher education and medical sectors. Proponents argue that the bill will foster innovation and bolster the state’s economy by allowing institutions to focus on commercialization without the burden of excessive taxation. However, some concerns have been raised regarding the potential misuse of tax exemptions and whether the benefits will adequately support the intended research developments.
Contention
Key points of contention include the balance between promoting economic development through tax exemptions and ensuring accountability and compliance among the corporations formed under the bill. Critics question how effectively the bill will prevent misuse of the exemptions and whether there will be sufficient oversight to ensure that the corporations adhere to the outlined educational and technological goals. Additionally, there's an ongoing debate about the equitable distribution of research funding and outcomes across different sectors, which could be influenced by this bill.
Enabling for
Proposing a constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of certain property owned by or leased to or by a university research technology corporation.
Relating to the disclosure of certain gifts, grants, contracts, and financial interests received from a foreign source by certain state agencies, public institutions of higher education, and state contractors, and to the approval and monitoring of employment-related foreign travel and activities by certain public institution of higher education employees; providing civil and administrative penalties.
Relating to the disclosure of certain gifts, grants, contracts, and financial interests received from a foreign source by certain state agencies, public institutions of higher education, and state contractors, and to the approval and monitoring of employment-related foreign travel and activities by certain public institution of higher education employees; providing civil and administrative penalties.
Relating to an annual study by the Texas A&M University Texas Real Estate Research Center of the purchase and sale of single-family homes by certain institutional buyers.
Relating to the creation of research technology corporations for the development and commercialization of technologies owned by institutions of higher education or by certain medical centers with members that are institutions of higher education; providing for tax exemptions; providing a penalty.
Relating to the creation of research technology corporations for the development and commercialization of technologies owned by institutions of higher education or by certain medical centers with members that are institutions of higher education; providing for tax exemptions; providing a penalty.
Establishes an income tax credit for donations of property used for research or direct education of students to certain educational institutions (EG -$2,120,000 GF RV See Note)
Establishes Clean Energy Technology Center and Alternative and Clean Energy Investment Trust Fund for purposes of creating clean energy-related employment opportunities; allocates revenues from societal benefits charge to support its activities.