Texas 2019 - 86th Regular

Texas Senate Bill SB1116 Compare Versions

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

Old	New	Differences
1	1	86R7734 SMT-F
2	2	By: Lucio S.B. No. 1116
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to insurance premium tax credits for the construction or
8	8	rehabilitation of a supportive housing property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 3, Insurance Code, is amended
11	11	by adding Chapter 234 to read as follows:
12	12	CHAPTER 234. PREMIUM TAX CREDIT FOR CONSTRUCTION OR REHABILITATION
13	13	OF SUPPORTIVE HOUSING PROPERTY
14	14	Sec. 234.001. DEFINITIONS. In this chapter:
15	15	(1) "Corporation" means the Texas State Affordable
16	16	Housing Corporation established under Subchapter Y, Chapter 2306,
17	17	Government Code.
18	18	(2) "Eligible costs and expenses" means costs and
19	19	expenses incurred in the construction or rehabilitation of a
20	20	supportive housing property that the corporation determines are
21	21	reasonable and necessary to the construction or rehabilitation of
22	22	the property.
23	23	(3) "State premium tax liability" means any liability
24	24	incurred by an entity under Chapter 222.
25	25	(4) "Supportive housing property" means a residential
26	26	rental development:
27	27	(A) that is intended for occupancy by individuals
28	28	who need assistance to live independently; and
29	29	(B) at which individuals receive on-site case
30	30	management and other services designed to:
31	31	(i) aid the individual in addressing a
32	32	debilitating condition; or
33	33	(ii) assist the individual in securing the
34	34	skills, assets, and connections necessary to live independently.
35	35	Sec. 234.002. ELIGIBILITY FOR CREDIT. An entity is
36	36	eligible to apply for and claim a credit against state premium tax
37	37	liability in the amount and under the conditions and limitations
38	38	provided by this chapter.
39	39	Sec. 234.003. QUALIFICATION. (a) An entity is eligible for
40	40	a credit for eligible costs and expenses incurred in the
41	41	construction or rehabilitation of a supportive housing property as
42	42	provided by this chapter if:
43	43	(1) the supportive housing property is placed in
44	44	service on or after September 1, 2019; and
45	45	(2) the total amount of the eligible costs and
46	46	expenses incurred by the entity exceeds $5,000.
47	47	(b) An entity may receive a credit under this chapter
48	48	regardless of whether the entity incurs state premium tax
49	49	liability.
50	50	Sec. 234.004. CERTIFICATION OF ELIGIBILITY. (a) Before
51	51	applying for, claiming, selling, or assigning a credit under this
52	52	chapter, the entity that constructed or rehabilitated the
53	53	supportive housing property must request from the corporation a
54	54	certificate of eligibility on which the corporation certifies that
55	55	the costs and expenses incurred meet the definition of eligible
56	56	costs and expenses. The entity must include with the entity's
57	57	request information on the property that is sufficient for the
58	58	corporation to determine whether the property meets the definition
59	59	of a supportive housing property.
60	60	(b) The corporation shall issue a certificate of
61	61	eligibility to an entity that has incurred eligible costs and
62	62	expenses as provided by this chapter. The certificate must:
63	63	(1) confirm that the property to which the eligible
64	64	costs and expenses relate is supportive housing property; and
65	65	(2) estimate the date the supportive housing property
66	66	will be placed in service.
67	67	(c) The corporation by rule shall prescribe procedures by
68	68	which the corporation may allocate credits under this chapter. The
69	69	corporation may not certify eligible costs and expenses that exceed
70	70	the annual limit provided by Section 234.005(d).
71	71	(d) The entity must forward the certificate of eligibility
72	72	and the following documentation to the comptroller to apply for the
73	73	tax credit:
74	74	(1) an audited cost report issued by a certified
75	75	public accountant, as defined by Section 901.002, Occupations Code,
76	76	that itemizes the eligible costs and expenses incurred in the
77	77	construction or rehabilitation of the supportive housing property
78	78	by the entity; and
79	79	(2) an attestation of the total eligible costs and
80	80	expenses incurred by the entity in the construction or
81	81	rehabilitation of the supportive housing property.
82	82	(e) For purposes of approving the tax credit under
83	83	Subsection (d), the comptroller may rely on the audited cost report
84	84	provided by the entity that requested the tax credit.
85	85	(f) An entity that sells or assigns a credit under this
86	86	chapter to another entity shall provide a copy of the certificate of
87	87	eligibility, together with the audited cost report, to the
88	88	purchaser or assignee.
89	89	Sec. 234.005. AMOUNT OF CREDIT; LIMITATIONS. (a) The total
90	90	amount of the credit under this chapter with respect to the
91	91	construction or rehabilitation of a single supportive housing
92	92	property that may be claimed may not exceed 20 percent of the total
93	93	eligible costs and expenses incurred in the construction or
94	94	rehabilitation of the supportive housing property.
95	95	(b) The total credit that may be claimed on a report,
96	96	including the amount of any carryforward under Section 234.006, may
97	97	not exceed the amount of state premium tax liability due for the
98	98	report after any other applicable tax credits.
99	99	(c) Eligible costs and expenses may only be counted once in
100	100	determining the amount of the tax credit available, and more than
101	101	one entity may not claim a credit for the same eligible costs and
102	102	expenses.
103	103	(d) The total amount of tax credits that may be claimed by
104	104	all entities under this chapter may not exceed $5 million in a state
105	105	fiscal year.
106	106	Sec. 234.006. CARRYFORWARD. (a) If an entity is eligible
107	107	for a credit that exceeds the limitation under Section 234.005(b),
108	108	the entity may carry the unused credit forward for not more than
109	109	five consecutive reports.
110	110	(b) A carryforward is considered the remaining portion of a
111	111	credit that cannot be claimed in the current year because of the
112	112	limitation under Section 234.005(b).
113	113	Sec. 234.007. APPLICATION FOR CREDIT; CLAIMING CREDIT. (a)
114	114	An entity must apply for a credit under this chapter on a form
115	115	promulgated by the comptroller for that purpose.
116	116	(b) An entity shall include with the application a copy of
117	117	the certificate of eligibility issued by the corporation as
118	118	required by Section 234.004(d) and any other information required
119	119	by the comptroller to sufficiently demonstrate the entity is
120	120	eligible for the credit and to determine the amount of the credit.
121	121	(c) The burden of establishing eligibility for and the value
122	122	of the credit is on the entity.
123	123	(d) The comptroller shall issue a credit certificate to an
124	124	entity the comptroller determines is eligible for a credit under
125	125	this chapter indicating that the entity is the owner of the credit
126	126	and the amount of credit available to the entity.
127	127	(e) An entity may claim a credit under this chapter on or
128	128	with the report due under Section 222.005. The entity shall include
129	129	with each report on which a credit is claimed the certificate issued
130	130	by the comptroller under Subsection (d).
131	131	Sec. 234.008. SALE OR ASSIGNMENT OF CREDIT. (a) An entity
132	132	that incurs eligible costs and expenses may sell or assign all or
133	133	part of the credit that may be claimed for those costs and expenses
134	134	to one or more entities, and any entity to which all or part of the
135	135	credit is sold or assigned may sell or assign all or part of the
136	136	credit to another entity. There is no limit on the total number of
137	137	transactions for the sale or assignment of all or part of the total
138	138	credit authorized under this chapter; however, collectively all
139	139	transfers are subject to the maximum total limits provided by
140	140	Section 234.005.
141	141	(b) An entity that sells or assigns a credit under this
142	142	section and the entity to which the credit is sold or assigned shall
143	143	jointly submit written notice of the sale or assignment to the
144	144	comptroller on a form promulgated by the comptroller not later than
145	145	the 30th day after the date of the sale or assignment. The notice
146	146	must include:
147	147	(1) the date of the sale or assignment;
148	148	(2) the amount of the credit sold or assigned;
149	149	(3) the names and federal tax identification numbers
150	150	of the entity that sold or assigned the credit or part of the credit
151	151	and the entity to which the credit or part of the credit was sold or
152	152	assigned; and
153	153	(4) the amount of the credit owned by the selling or
154	154	assigning entity before the sale or assignment, and the amount the
155	155	selling or assigning entity retained, if any, after the sale or
156	156	assignment.
157	157	(c) The sale or assignment of a credit in accordance with
158	158	this section does not extend the period for which a credit may be
159	159	carried forward and does not increase the total amount of the credit
160	160	that may be claimed. After an entity claims a credit for eligible
161	161	costs and expenses, another entity may not use the same costs and
162	162	expenses as the basis for claiming a credit.
163	163	(d) Notwithstanding the requirements of this chapter, a
164	164	credit earned or purchased by, or assigned to, a partnership,
165	165	limited liability company, S corporation, or other pass-through
166	166	entity may be allocated to the partners, members, or shareholders
167	167	of that entity and claimed under this chapter in accordance with the
168	168	provisions of any agreement among the partners, members, or
169	169	shareholders and without regard to the ownership interest of the
170	170	partners, members, or shareholders in the supportive housing
171	171	property, provided that the entity that claims the credit must be
172	172	subject to the tax imposed under Chapter 222.
173	173	Sec. 234.009. RETALIATORY TAX. An entity that claims a
174	174	credit under this chapter is not required to pay any additional
175	175	retaliatory tax levied under Chapter 281 as a result of the credit.
176	176	Sec. 234.010. RULES. The corporation and the comptroller
177	177	shall adopt rules necessary to implement this chapter.
178	178	SECTION 2. This Act applies only to a report originally due
179	179	on or after the effective date of this Act.
180	180	SECTION 3. This Act takes effect September 1, 2019.