Texas 2017 - 85th Regular

Texas Senate Bill SB2152 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R3033 CBH-F
2	2	By: Huffman S.B. No. 2152
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the transfer of certain unused franchise tax credits.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 18, Chapter 1 (H.B. 3), Acts of the 79th
10	10	Legislature, 3rd Called Session, 2006, is amended by adding
11	11	Subsections (h), (i), (j), (j-1), and (k) to read as follows:
12	12	(h) In this subsection and Subsection (i) of this section,
13	13	"transfer" includes a sale. Notwithstanding Subsections (e) and (f)
14	14	of this section, a corporation that had unused credits before
15	15	January 1, 2008, under former Subchapter P or Q, Chapter 171, Tax
16	16	Code, that expired under the terms of one of those former
17	17	subchapters or under Subsection (e) or (f) of this section, may
18	18	transfer the right to all or part of the expired credits to another
19	19	taxpayer of this state. The taxpayer to whom a credit is transferred
20	20	may apply the credit only as provided by Subsections (j) and (j-1)
21	21	of this section. To be eligible to transfer all or part of the
22	22	credits, the corporation must obtain a certificate of transfer of
23	23	credit from the comptroller for the amount of the credits to be
24	24	transferred. Not later than the 30th day after the date of the
25	25	transfer, the corporation must submit to the comptroller a notice
26	26	of the transfer in a form prescribed by the comptroller. The notice
27	27	must be accompanied by a copy of the certificate of transfer issued
28	28	by the comptroller and specify:
29	29	(1) the number on the certificate of transfer;
30	30	(2) the amount of the corporation's unused credits
31	31	preceding the transfer;
32	32	(3) the date of the transfer;
33	33	(4) the total amount of credits transferred;
34	34	(5) the tax identification numbers of the corporation
35	35	and the taxpayer to which the credit was transferred;
36	36	(6) the corporation's remaining amount of unused
37	37	credits after the transfer; and
38	38	(7) any other information the comptroller requires.
39	39	(i) The transfer of a credit under Subsection (h) of this
40	40	section is limited to an unused credit for which the corporation was
41	41	eligible before January 1, 2008, and does not include credits
42	42	authorized under former Subchapter Q-1, Chapter 171, Tax Code, or
43	43	credits that were created under the terms of a written agreement
44	44	between a taxpayer and the Texas Department of Economic Development
45	45	or its successor that was entered into before June 1, 2006, and that
46	46	continue to accrue under the terms provided by Section 19 of this
47	47	Act. Subject to Subsection (j-1) of this section, the transferee of
48	48	a credit under this section obtains the credit subject to the same
49	49	rights and privileges as the transferor had on the date the credit
50	50	was originally established. If a corporation transfers a credit
51	51	that the corporation was not entitled to transfer at the time of the
52	52	transfer:
53	53	(1) the taxpayer to which the credit was transferred
54	54	may pursue any remedy authorized by law against the corporation and
55	55	may not pursue any remedy against the comptroller or this state; and
56	56	(2) the comptroller or Texas Workforce Commission, as
57	57	appropriate:
58	58	(A) may not allow the taxpayer to which the
59	59	credit was transferred to apply the credit on a report for a tax or
60	60	contribution listed in Subsection (j) of this section; or
61	61	(B) shall recover from the taxpayer the amount of
62	62	the credit the taxpayer claims on a report using any means
63	63	authorized by law.
64	64	(j) Subject to Subsection (j-1) of this section, a taxpayer
65	65	to which a credit is transferred under Subsection (h) of this
66	66	section may apply the credit against:
67	67	(1) the taxes due under Chapters 151, 152, 154, 155,
68	68	156, 158, 160, 162, 171, 181, 182, 183, 191, 201, and 202, Tax Code;
69	69	(2) the occupation taxes due under Title 3, Insurance
70	70	Code; and
71	71	(3) a contribution due under Subtitle A, Title 4,
72	72	Labor Code.
73	73	(j-1) A taxpayer to which a credit is transferred under
74	74	Subsection (h) of this section may apply the credit only:
75	75	(1) on or with a franchise tax report covering a period
76	76	for which the transferring corporation would have been entitled to
77	77	apply the transferred credit under Subsection (e) or (f) of this
78	78	section, as appropriate, in the absence of a limitation on the
79	79	amount of the credit for that period; and
80	80	(2) in relation to occupation taxes imposed under
81	81	Title 3, Insurance Code, or other taxes and contributions paid to
82	82	this state, during a period for which the transferring corporation
83	83	would have been entitled to apply the transferred credit under
84	84	Subsection (e) or (f) of this section, as appropriate, in the
85	85	absence of a limitation on the amount of the credit for that period.
86	86	(k) A taxpayer to which an unused tax credit is transferred
87	87	under Subsection (h) of this section may not apply the credit after
88	88	August 31, 2019.
89	89	SECTION 2. This Act takes effect immediately if it receives
90	90	a vote of two-thirds of all the members elected to each house, as
91	91	provided by Section 39, Article III, Texas Constitution. If this
92	92	Act does not receive the vote necessary for immediate effect, this
93	93	Act takes effect September 1, 2017.