86R2043 MEW-D
By: Middleton H.B. No. 3130
A BILL TO BE ENTITLED
AN ACT
relating to federal refundable credits paid directly to issuers of
certain bonds issued by or on behalf of school districts or
open-enrollment charter schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 45, Education Code, is
amended by adding Section 45.114 to read as follows:
Sec. 45.114. DEPOSIT OF DIRECT PAY SUBSIDIES ON CERTAIN
FEDERAL TAX CREDIT BONDS. (a) This section applies only to bonds:
(1) that were issued as:
(A) build America bonds in accordance with former
Section 54AA, Internal Revenue Code of 1986, as added by Section
1531(a), Title I, Division B, American Recovery and Reinvestment
Act of 2009 (Pub. L. No. 111-5);
(B) qualified school construction bonds in
accordance with Section 54F, Internal Revenue Code of 1986, as
added by Section 1521(a), Title I, Division B, American Recovery
and Reinvestment Act of 2009 (Pub. L. No. 111-5); or
(C) qualified zone academy bonds in accordance
with Section 54E, Internal Revenue Code of 1986, as added by Section
313(a), Title III, Division C, Emergency Economic Stabilization Act
of 2008 (Pub. L. No. 110-343); and
(2) for which a school district or open-enrollment
charter school elected to receive a federal refundable tax credit
in accordance with:
(A) for bonds described by Subdivision (1)(A),
former Section 54AA(f), Internal Revenue Code of 1986; or
(B) for bonds described by Subdivision (1)(B) or
(C), former Section 6431, Internal Revenue Code of 1986.
(b) A school district or open-enrollment charter school
shall deposit a federal refundable tax credit payment described by
Subsection (a)(2) and received in connection with a bond issued by
or on behalf of the school district or open-enrollment charter
school to the credit of the interest and sinking fund established
for that bond.
SECTION 2. This Act takes effect September 1, 2019.