By: Noble, Guillen (Senate Sponsor - Nelson) H.B. No. 3777
(In the Senate - Received from the House May 5, 2021;
May 10, 2021, read first time and referred to Committee on Finance;
May 19, 2021, reported favorably by the following vote: Yeas 12,
Nays 1; May 19, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to eligible costs and expenses for purposes of the
franchise tax credit for the certified rehabilitation of certified
historic structures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.901(4), Tax Code, as effective
January 1, 2022, is redesignated as Section 171.9015, Tax Code, and
amended to read as follows:
Sec. 171.9015. ELIGIBLE COSTS AND EXPENSES. (a) Subject to
Subsections (b) and (c), in this subchapter, "eligible [(4)
"Eligible] costs and expenses" means qualified rehabilitation
expenditures as defined by Section 47(c)(2), Internal Revenue Code.
(b) Except as provided by Subsection (c), the [, except that
the] depreciation and tax-exempt use provisions of Section
47(c)(2), Internal Revenue Code, [that section] do not apply to
costs and expenses incurred by an entity exempt from the tax imposed
under this chapter by Section 171.063, and those costs and expenses
are eligible costs and expenses if the other provisions of Section
47(c)(2), Internal Revenue Code, are satisfied.
(c) Expenditures by an entity described by Subsection (b) to
rehabilitate a structure that is leased to a tax-exempt entity in a
disqualified lease, as those terms are defined by Section 168(h),
Internal Revenue Code, are not eligible costs and expenses.
SECTION 2. The change in law made by this Act to Section
171.901(4), Tax Code, applies only to costs and expenses incurred
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2022.
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