Texas 2015 - 84th Regular

Texas Senate Bill SB514 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Taylor of Galveston S.B. No. 514
2		-	(In the Senate - Filed February 10, 2015;
3		-	February 11, 2015, read first time and referred to Committee on
4		-	Finance; May 7, 2015, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 13, Nays 0; May 7, 2015,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 514 By: Taylor of Galveston
	2	+	Taylor of Collin
9	3
10	4
11	5		A BILL TO BE ENTITLED
12	6		AN ACT
13	7		relating to a deduction under the franchise tax for certain
14	8		contracts with the federal government.
15	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	10		SECTION 1. Section 171.101(a), Tax Code, is amended to read
17	11		as follows:
18	12		(a) The taxable margin of a taxable entity is computed by:
19	13		(1) determining the taxable entity's margin, which is
20	14		the lesser of:
21	15		(A) the amount provided by this paragraph, which
22	16		is the lesser of:
23	17		(i) 70 percent of the taxable entity's total
24	18		revenue from its entire business, as determined under Section
25	19		171.1011; or
26	20		(ii) an amount equal to the taxable entity's
27	21		total revenue from its entire business as determined under Section
28	22		171.1011 minus $1 million; or
29	23		(B) an amount computed by determining the taxable
30	24		entity's total revenue from its entire business under Section
31	25		171.1011 and subtracting the greater of:
32	26		(i) $1 million; or
33	27		(ii) an amount equal to the sum of:
34	28		(a) at the election of the taxable
35	29		entity, either:
36	30		(1) cost of goods sold, as
37	31		determined under Section 171.1012; or
38	32		(2) compensation, as determined
39	33		under Section 171.1013; [and]
40	34		(b) any compensation, as determined
41	35		under Section 171.1013, paid to an individual during the period the
42	36		individual is serving on active duty as a member of the armed forces
43	37		of the United States if the individual is a resident of this state
44	38		at the time the individual is ordered to active duty and the cost of
45	39		training a replacement for the individual; and
46	40		(c) any costs not already subtracted
47	41		under Sub-subparagraph (a) that are properly allowable under the
48	42		Federal Acquisition Regulation (48 C.F.R. Chapter 1), or a
49	43		successor regulation, for contracts, or subcontracts supporting
50	44		those contracts, for the sale of goods or services to the federal
51	45		government by a taxable entity that is a party to at least one
52	46		contract subject to the requirements of 48 C.F.R. Chapter 2;
53	47		(2) apportioning the taxable entity's margin to this
54	48		state as provided by Section 171.106 to determine the taxable
55	49		entity's apportioned margin; and
56	50		(3) subtracting from the amount computed under
57	51		Subdivision (2) any other allowable deductions to determine the
58	52		taxable entity's taxable margin.
59	53		SECTION 2. This Act applies only to a report originally due
60	54		on or after January 1, 2016.
61	55		SECTION 3. This Act takes effect January 1, 2016.
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