| 1 | | - | H.B. No. 1195 |
|---|
| 1 | + | By: Geren, et al. (Senate Sponsor - Hancock) H.B. No. 1195 |
|---|
| 2 | + | (In the Senate - Received from the House April 6, 2021; |
|---|
| 3 | + | April 6, 2021, read first time and referred to Committee on |
|---|
| 4 | + | Finance; April 13, 2021, reported favorably by the following vote: |
|---|
| 5 | + | Yeas 14, Nays 0; April 13, 2021, sent to printer.) |
|---|
| 6 | + | Click here to see the committee vote |
|---|
| 4 | 10 | | AN ACT |
|---|
| 5 | 11 | | relating to the franchise tax treatment of certain loans and grants |
|---|
| 6 | 12 | | made under the federal Coronavirus Aid, Relief, and Economic |
|---|
| 7 | 13 | | Security Act. |
|---|
| 8 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 15 | | SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended |
|---|
| 10 | 16 | | by adding Section 171.10131 to read as follows: |
|---|
| 11 | 17 | | Sec. 171.10131. PROVISIONS RELATED TO CERTAIN MONEY |
|---|
| 12 | 18 | | RECEIVED FOR COVID-19 RELIEF. (a) In this section, "qualifying |
|---|
| 13 | | - | loan or grant proceeds" means the amount of money received by a |
|---|
| 14 | | - | taxable entity that: |
|---|
| 15 | | - | (1) is: |
|---|
| 16 | | - | (A) a loan or grant under the Coronavirus Aid, |
|---|
| 17 | | - | Relief, and Economic Security Act (15 U.S.C. Section 9001 et seq.), |
|---|
| 18 | | - | as amended by the Paycheck Protection Program Flexibility Act of |
|---|
| 19 | | - | 2020 (Pub. L. No. 116-142), the Consolidated Appropriations Act, |
|---|
| 20 | | - | 2021 (Pub. L. No. 116-260), the American Rescue Plan Act of 2021 |
|---|
| 21 | | - | (Pub. L. No. 117-2), and the PPP Extension Act of 2021 (Pub. L. |
|---|
| 22 | | - | No. 117-6); |
|---|
| 23 | | - | (B) a shuttered venue operator grant under |
|---|
| 24 | | - | Section 324 of the Consolidated Appropriations Act, 2021 (Pub. L. |
|---|
| 25 | | - | No. 116-260), as amended by Section 5005 of the American Rescue |
|---|
| 26 | | - | Plan Act of 2021 (Pub. L. No. 117-2); |
|---|
| 27 | | - | (C) microloan program recovery assistance under |
|---|
| 28 | | - | Section 329 of the Consolidated Appropriations Act, 2021 (Pub. L. |
|---|
| 19 | + | loan or grant proceeds" means the amount of money that: |
|---|
| 20 | + | (1) is received by a taxable entity in loans or grants: |
|---|
| 21 | + | (A) under the Coronavirus Aid, Relief, and |
|---|
| 22 | + | Economic Security Act (15 U.S.C. Section 9001 et seq.), as amended |
|---|
| 23 | + | by the Paycheck Protection Program Flexibility Act of 2020 (Pub. L. |
|---|
| 24 | + | No. 116-142) and the Consolidated Appropriations Act, 2021 (Pub. L. |
|---|
| 39 | 35 | | (b) Notwithstanding any other law, a taxable entity: |
|---|
| 40 | 36 | | (1) shall exclude from its total revenue, to the |
|---|
| 41 | 37 | | extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or |
|---|
| 42 | 38 | | (c)(3), qualifying loan or grant proceeds; |
|---|
| 43 | 39 | | (2) may include as a cost of goods sold under Section |
|---|
| 44 | 40 | | 171.1012 any expense paid using qualifying loan or grant proceeds |
|---|
| 45 | 41 | | to the extent the expense is otherwise includable as a cost of goods |
|---|
| 46 | 42 | | sold under that section; and |
|---|
| 47 | 43 | | (3) may include as compensation under Section 171.1013 |
|---|
| 48 | 44 | | any expense paid using qualifying loan or grant proceeds to the |
|---|
| 49 | 45 | | extent the expense is otherwise includable as compensation under |
|---|
| 50 | 46 | | that section. |
|---|
| 51 | 47 | | SECTION 2. This Act applies only to a report originally due |
|---|
| 52 | 48 | | on or after January 1, 2021. |
|---|
| 53 | 49 | | SECTION 3. This Act takes effect immediately if it receives |
|---|
| 54 | 50 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 55 | 51 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 56 | 52 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 57 | 53 | | Act takes effect September 1, 2021. |
|---|
| 58 | | - | ______________________________ ______________________________ |
|---|
| 59 | | - | President of the Senate Speaker of the House |
|---|
| 60 | | - | I certify that H.B. No. 1195 was passed by the House on April |
|---|
| 61 | | - | 1, 2021, by the following vote: Yeas 148, Nays 0, 1 present, not |
|---|
| 62 | | - | voting; and that the House concurred in Senate amendments to H.B. |
|---|
| 63 | | - | No. 1195 on April 23, 2021, by the following vote: Yeas 143, Nays |
|---|
| 64 | | - | 1, 1 present, not voting. |
|---|
| 65 | | - | ______________________________ |
|---|
| 66 | | - | Chief Clerk of the House |
|---|
| 67 | | - | I certify that H.B. No. 1195 was passed by the Senate, with |
|---|
| 68 | | - | amendments, on April 19, 2021, by the following vote: Yeas 31, |
|---|
| 69 | | - | Nays 0. |
|---|
| 70 | | - | ______________________________ |
|---|
| 71 | | - | Secretary of the Senate |
|---|
| 72 | | - | APPROVED: __________________ |
|---|
| 73 | | - | Date |
|---|
| 74 | | - | __________________ |
|---|
| 75 | | - | Governor |
|---|
| 54 | + | * * * * * |
|---|