Texas 2017 - 85th Regular

Texas House Bill HB3299 Compare Versions

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Old	New	Differences
1	1	85R8448 BEF-D
2	2	By: Thierry H.B. No. 3299
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a franchise tax credit for entities that establish a
8	8	grocery store or healthy corner store in a food desert.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 171, Tax Code, is amended by adding
11	11	Subchapter N-1 to read as follows:
12	12	SUBCHAPTER N-1. TAX CREDIT FOR ESTABLISHMENT OF FOOD STORE IN FOOD
13	13	DESERT
14	14	Sec. 171.721. DEFINITIONS. In this subchapter:
15	15	(1) "Corner store" means a store that has less than
16	16	2,000 square feet of retail space.
17	17	(2) "Food desert" means a geographic area in this
18	18	state determined by the comptroller to be an area that:
19	19	(A) has limited access to healthy food retailers
20	20	and is located in a low-income or high-poverty area; or
21	21	(B) otherwise has serious healthy food access
22	22	limitations.
23	23	(3) "Grocery store" means a store that has at least:
24	24	(A) 66 percent of the store's retail space
25	25	reserved for the sale of food products;
26	26	(B) 50 percent of the store's food retail space
27	27	reserved for the sale of non-prepared foods or foods intended for
28	28	home preparation and consumption; and
29	29	(C) 30 percent of the store's food retail space
30	30	reserved for the sale of perishable foods, including dairy
31	31	products, fresh produce, fresh meats, poultry, and fish, and frozen
32	32	foods.
33	33	(4) "Healthy corner store" means a corner store that:
34	34	(A) offers a wide variety of fresh produce for
35	35	sale; and
36	36	(B) allocates at least 20 percent of the store's
37	37	retail space to fresh produce and other perishable foods, including
38	38	dairy products.
39	39	(5) "Supplemental nutrition assistance program" means
40	40	the nutritional assistance program operated under Chapter 33, Human
41	41	Resources Code, and formerly referred to as the food stamp program.
42	42	(6) "WIC program" means the federal special
43	43	supplemental nutrition program for women, infants, and children
44	44	authorized by 42 U.S.C. Section 1786.
45	45	Sec. 171.722. ENTITLEMENT TO CREDIT. A taxable entity is
46	46	entitled to a credit in the amount and under the conditions and
47	47	limitations provided by this subchapter against the tax imposed
48	48	under this chapter.
49	49	Sec. 171.723. QUALIFICATION. A taxable entity qualifies
50	50	for a credit under this subchapter if, on or after January 1, 2018,
51	51	the taxable entity opens a grocery store or healthy corner store:
52	52	(1) located in a food desert;
53	53	(2) located in a low or moderate income area, as
54	54	determined by the United States Department of Housing and Urban
55	55	Development, or that serves a customer base living in a low or
56	56	moderate income area;
57	57	(3) that begins accepting benefits under the WIC
58	58	program and the supplemental nutrition assistance program not later
59	59	than the 90th day after the date the store opens; and
60	60	(4) that is open year-round.
61	61	Sec. 171.724. AMOUNT OF CREDIT. (a) A taxable entity may
62	62	claim a credit for each store described by Section 171.723 equal to
63	63	five percent of the amount the taxable entity spends to establish
64	64	the store during the earliest 12-month period:
65	65	(1) in which the taxable entity makes an expenditure
66	66	to which this section applies; and
67	67	(2) that includes the date the store opens for
68	68	business.
69	69	(b) Subsection (a) applies to amounts spent to:
70	70	(1) purchase or lease the land or building for the
71	71	store;
72	72	(2) construct or remodel the store; and
73	73	(3) furnish and equip the store.
74	74	(c) Subsection (a) does not apply to amounts spent to
75	75	acquire inventory for the store.
76	76	Sec. 171.725. LIMITATIONS. (a) The total credit a taxable
77	77	entity may claim under this subchapter for a tax report, including
78	78	the amount of any credit carryforward under Section 171.727, may
79	79	not exceed 50 percent of the amount of franchise tax due after
80	80	applying all other applicable credits.
81	81	(b) A taxable entity may not convey, assign, or transfer a
82	82	credit under this subchapter to another entity unless all of the
83	83	assets of the taxable entity are conveyed, assigned, or transferred
84	84	in the same transaction.
85	85	Sec. 171.726. PERIOD FOR WHICH CREDIT MAY BE CLAIMED.
86	86	Subject to Section 171.727, a taxable entity may claim a credit
87	87	under this subchapter on a tax report only for an expenditure made
88	88	during the period on which the report is based.
89	89	Sec. 171.727. CARRYFORWARD. (a) If a taxable entity is
90	90	eligible for a credit that exceeds the limitation under Section
91	91	171.725(a), the taxable entity may carry the unused credit forward
92	92	for not more than five consecutive reports.
93	93	(b) Credits, including credit carryforwards, are considered
94	94	to be used in the following order:
95	95	(1) a credit carryforward under this subchapter; and
96	96	(2) a current year credit.
97	97	Sec. 171.728. APPLICATION FOR CREDIT. A taxable entity
98	98	must apply for a credit under this subchapter on or with the tax
99	99	report for the period for which the credit is claimed. The
100	100	comptroller may promulgate an application form for the credit under
101	101	this subchapter.
102	102	Sec. 171.729. RULES. The comptroller may adopt any rules
103	103	necessary to administer this subchapter.
104	104	SECTION 2. This Act applies only to a report originally due
105	105	on or after the effective date of this Act.
106	106	SECTION 3. This Act takes effect January 1, 2018.