Texas 2019 - 86th Regular

Texas Senate Bill SB574 Compare Versions

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

Old	New	Differences
1	1	86R4375 BEF-D
2	2	By: Miles S.B. No. 574
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a franchise tax credit for entities that establish a
8	8	grocery store or healthy corner store in a food desert.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 171, Tax Code, is amended by adding
11	11	Subchapter N-1 to read as follows:
12	12	SUBCHAPTER N-1. TAX CREDIT FOR ESTABLISHMENT OF FOOD STORE IN FOOD
13	13	DESERT
14	14	Sec. 171.721. DEFINITIONS. In this subchapter:
15	15	(1) "Corner store" means a store that has fewer than
16	16	2,000 square feet of retail space.
17	17	(2) "Department" means the Texas Department of Housing
18	18	and Community Affairs.
19	19	(3) "Food desert" means a geographic area in this
20	20	state determined by the department to be an area that:
21	21	(A) has limited access to healthy food retailers
22	22	and is located in a low-income or high-poverty area; or
23	23	(B) otherwise has serious healthy food access
24	24	limitations.
25	25	(4) "Grocery store" means a store that has at least:
26	26	(A) 66 percent of the store's retail space
27	27	reserved for the sale of food products;
28	28	(B) 50 percent of the store's food retail space
29	29	reserved for the sale of non-prepared foods or foods intended for
30	30	home preparation and consumption; and
31	31	(C) 30 percent of the store's food retail space
32	32	reserved for the sale of perishable foods, including dairy
33	33	products, fresh produce, fresh meats, poultry, and fish, and frozen
34	34	foods.
35	35	(5) "Healthy corner store" means a corner store that:
36	36	(A) offers a wide variety of fresh produce for
37	37	sale; and
38	38	(B) allocates at least 20 percent of the store's
39	39	retail space to fresh produce and other perishable foods, including
40	40	dairy products.
41	41	(6) "Supplemental nutrition assistance program" means
42	42	the nutritional assistance program operated under Chapter 33, Human
43	43	Resources Code, and formerly referred to as the food stamp program.
44	44	(7) "WIC program" means the federal special
45	45	supplemental nutrition program for women, infants, and children
46	46	authorized by 42 U.S.C. Section 1786.
47	47	Sec. 171.722. ENTITLEMENT TO CREDIT. A taxable entity is
48	48	entitled to a credit in the amount and under the conditions and
49	49	limitations provided by this subchapter against the tax imposed
50	50	under this chapter.
51	51	Sec. 171.723. QUALIFICATION. A taxable entity qualifies
52	52	for a credit under this subchapter if, on or after January 1, 2020,
53	53	the taxable entity opens a grocery store or healthy corner store:
54	54	(1) located in a food desert;
55	55	(2) located in a low or moderate income area, as
56	56	determined by the United States Department of Housing and Urban
57	57	Development, or that serves a customer base living in a low or
58	58	moderate income area;
59	59	(3) that begins accepting benefits under the WIC
60	60	program and the supplemental nutrition assistance program not later
61	61	than the 90th day after the date the store opens; and
62	62	(4) that is open year-round.
63	63	Sec. 171.724. CERTIFICATION OF ELIGIBILITY. (a) Before
64	64	claiming a credit under this subchapter, a taxable entity must
65	65	request from the department a certificate of eligibility on which
66	66	the department certifies that the taxable entity qualifies for a
67	67	credit under Section 171.723. The taxable entity must include with
68	68	the taxable entity's request information required by the department
69	69	to determine whether the taxable entity meets the requirements of
70	70	Section 171.723.
71	71	(b) The department shall issue a certificate of eligibility
72	72	to a taxable entity that qualifies for a credit under Section
73	73	171.723.
74	74	(c) The taxable entity must forward the certificate of
75	75	eligibility and the following documentation to the comptroller to
76	76	claim the credit:
77	77	(1) an audited cost report issued by a certified
78	78	public accountant, as defined by Section 901.002, Occupations Code,
79	79	that itemizes the taxable entity's expenditures to which Section
80	80	171.725 applies;
81	81	(2) the date the grocery store or healthy corner store
82	82	first opened for business and evidence of that opening; and
83	83	(3) an attestation of the total amount of the taxable
84	84	entity's expenditures to which Section 171.725 applies.
85	85	(d) For purposes of approving a credit under this
86	86	subchapter, the comptroller may rely on the audited cost report
87	87	provided by the taxable entity applying for the credit.
88	88	Sec. 171.725. AMOUNT OF CREDIT. (a) A taxable entity may
89	89	claim a credit for each store described by Section 171.723 equal to
90	90	five percent of the amount the taxable entity spends to establish
91	91	the store during the earliest 12-month period:
92	92	(1) in which the taxable entity makes an expenditure
93	93	to which this section applies; and
94	94	(2) that includes the date the store opens for
95	95	business.
96	96	(b) Subsection (a) applies to amounts spent to:
97	97	(1) purchase or lease the land or building for the
98	98	store;
99	99	(2) construct or remodel the store; and
100	100	(3) furnish and equip the store.
101	101	(c) Subsection (a) does not apply to amounts spent to
102	102	acquire inventory for the store.
103	103	Sec. 171.726. LIMITATIONS. (a) The total credit a taxable
104	104	entity may claim under this subchapter for a tax report, including
105	105	the amount of any credit carryforward under Section 171.728, may
106	106	not exceed 50 percent of the amount of franchise tax due after
107	107	applying all other applicable credits.
108	108	(b) A taxable entity may not convey, assign, or transfer a
109	109	credit under this subchapter to another entity unless all of the
110	110	assets of the taxable entity are conveyed, assigned, or transferred
111	111	in the same transaction.
112	112	Sec. 171.727. PERIOD FOR WHICH CREDIT MAY BE CLAIMED.
113	113	Subject to Section 171.728, a taxable entity may claim a credit
114	114	under this subchapter on a tax report only for an expenditure made
115	115	during the period on which the report is based.
116	116	Sec. 171.728. CARRYFORWARD. (a) If a taxable entity is
117	117	eligible for a credit that exceeds the limitation under Section
118	118	171.726(a), the taxable entity may carry the unused credit forward
119	119	for not more than five consecutive reports.
120	120	(b) Credits, including credit carryforwards, are considered
121	121	to be used in the following order:
122	122	(1) a credit carryforward under this subchapter; and
123	123	(2) a current year credit.
124	124	Sec. 171.729. APPLICATION FOR CREDIT. A taxable entity
125	125	must apply for a credit under this subchapter on or with the tax
126	126	report for the period for which the credit is claimed. The
127	127	comptroller may promulgate an application form for the credit under
128	128	this subchapter.
129	129	Sec. 171.730. RULES. (a) The department may adopt rules
130	130	governing the requirements to qualify for a credit under Section
131	131	171.723, including rules governing the stores that qualify as
132	132	grocery stores or healthy corner stores and the areas that qualify
133	133	as food deserts.
134	134	(b) The comptroller may adopt any rules necessary to
135	135	administer this subchapter other than rules described by Subsection
136	136	(a).
137	137	SECTION 2. This Act applies only to a report originally due
138	138	on or after the effective date of this Act.
139	139	SECTION 3. This Act takes effect January 1, 2020.