By: Bonnen of Brazoria H.B. No. 4002
A BILL TO BE ENTITLED
AN ACT
relating to the definition of "production" in the cost of goods sold
deduction for the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1012(a)(2), Tax Code, is amended to
read as follows:
(2) "Production" means [includes] construction,
[installation,] manufacture, development, mining, extraction,
improvement, creation, raising, or growth.
SECTION 2. This Act is a clarification of existing law and
does not imply that existing law may be construed as inconsistent
with the law as amended by this Act.
SECTION 3. This Act takes effect September 1, 2017.