Texas 2019 - 86th Regular

Texas House Bill HB1607 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1607
	1	+	By: Goldman, et al. (Senate Sponsor - Taylor) H.B. No. 1607
	2	+	(In the Senate - Received from the House May 13, 2019;
	3	+	May 13, 2019, read first time and referred to Committee on Finance;
	4	+	May 17, 2019, reported favorably by the following vote: Yeas 14,
	5	+	Nays 0; May 17, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to a deduction under the franchise tax for certain
6	12		contracts with the federal government.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. The legislature finds that:
9	15		(1) Texas is an epicenter of this nation's aerospace,
10	16		aviation, defense, and military industries;
11	17		(2) with NASA's Johnson Space Center in Houston, the
12	18		new Army Futures Command, 15 active military bases across the
13	19		state, and major military aircraft manufacturing and maintenance
14	20		operations, the Texas economy and our nation's aerospace and
15	21		defense capabilities are inextricably linked;
16	22		(3) these crucial industries employ tens of thousands
17	23		of Texans and support dozens of our communities across the state;
18	24		and
19	25		(4) it is therefore paramount that state tax policy
20	26		foster a competitive economic climate to ensure growth and
21	27		retention of jobs related to the development, manufacture,
22	28		maintenance, and ongoing services for military hardware, aircraft,
23	29		spacecraft, and weapons systems used by and produced for our armed
24	30		forces, related federal government agencies, and our global allies.
25	31		SECTION 2. Section 171.101, Tax Code, is amended by adding
26	32		Subsections (e) and (f) to read as follows:
27	33		(e) For purposes of Subsection (f), "aerospace costs" means
28	34		any costs not already subtracted under Subsection (a)(1)(B)(ii)(a)
29	35		that are properly allocated and incurred under the Federal
30	36		Acquisition Regulation (48 C.F.R. Chapter 1) and subject to the
31	37		requirements of 48 C.F.R. Chapter 2 or Chapter 18 for contracts, or
32	38		subcontracts supporting those contracts, for the sale of goods or
33	39		services to the federal government by a taxable entity in the
34	40		aerospace industry that is engaged in activities described by North
35	41		American Industry Classification System code 334511, 3364, 3399,
36	42		5413, 5415, 5416, or 5419. For purposes of this subsection, a
37	43		reference to a federal regulation includes a successor regulation.
38	44		(f) In computing the sum for purposes of Subsection
39	45		(a)(1)(B)(ii), a taxable entity may add to other amounts described
40	46		by that subparagraph:
41	47		(1) for a report originally due on or after January 1,
42	48		2020, and before January 1, 2021, 20 percent of aerospace costs;
43	49		(2) for a report originally due on or after January 1,
44	50		2021, and before January 1, 2022, 40 percent of aerospace costs;
45	51		(3) for a report originally due on or after January 1,
46	52		2022, and before January 1, 2023, 60 percent of aerospace costs;
47	53		(4) for a report originally due on or after January 1,
48	54		2023, and before January 1, 2024, 80 percent of aerospace costs; and
49	55		(5) for a report originally due on or after January 1,
50	56		2024, 100 percent of aerospace costs.
51	57		SECTION 3. This Act takes effect January 1, 2020.
52		-	______________________________ ______________________________
53		-	President of the Senate Speaker of the House
54		-	I certify that H.B. No. 1607 was passed by the House on May
55		-	10, 2019, by the following vote: Yeas 126, Nays 6, 1 present, not
56		-	voting.
57		-	______________________________
58		-	Chief Clerk of the House
59		-	I certify that H.B. No. 1607 was passed by the Senate on May
60		-	20, 2019, by the following vote: Yeas 28, Nays 3.
61		-	______________________________
62		-	Secretary of the Senate
63		-	APPROVED: _____________________
64		-	Date
65		-	_____________________
66		-	Governor
	58	+	* * * * *