| 1 | | - | H.B. No. 3777 |
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| 1 | + | By: Noble, Guillen (Senate Sponsor - Nelson) H.B. No. 3777 |
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| 2 | + | (In the Senate - Received from the House May 5, 2021; |
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| 3 | + | May 10, 2021, read first time and referred to Committee on Finance; |
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| 4 | + | May 19, 2021, reported favorably by the following vote: Yeas 12, |
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| 5 | + | Nays 1; May 19, 2021, sent to printer.) |
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| 6 | + | Click here to see the committee vote |
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| 4 | 10 | | AN ACT |
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| 5 | 11 | | relating to eligible costs and expenses for purposes of the |
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| 6 | 12 | | franchise tax credit for the certified rehabilitation of certified |
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| 7 | 13 | | historic structures. |
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| 8 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 15 | | SECTION 1. Section 171.901(4), Tax Code, as effective |
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| 10 | 16 | | January 1, 2022, is redesignated as Section 171.9015, Tax Code, and |
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| 11 | 17 | | amended to read as follows: |
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| 12 | 18 | | Sec. 171.9015. ELIGIBLE COSTS AND EXPENSES. (a) Subject to |
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| 13 | 19 | | Subsections (b) and (c), in this subchapter, "eligible [(4) |
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| 14 | 20 | | "Eligible] costs and expenses" means qualified rehabilitation |
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| 15 | 21 | | expenditures as defined by Section 47(c)(2), Internal Revenue Code. |
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| 16 | 22 | | (b) Except as provided by Subsection (c), the [, except that |
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| 17 | 23 | | the] depreciation and tax-exempt use provisions of Section |
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| 18 | 24 | | 47(c)(2), Internal Revenue Code, [that section] do not apply to |
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| 19 | 25 | | costs and expenses incurred by an entity exempt from the tax imposed |
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| 20 | 26 | | under this chapter by Section 171.063, and those costs and expenses |
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| 21 | 27 | | are eligible costs and expenses if the other provisions of Section |
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| 22 | 28 | | 47(c)(2), Internal Revenue Code, are satisfied. |
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| 23 | 29 | | (c) Expenditures by an entity described by Subsection (b) to |
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| 24 | 30 | | rehabilitate a structure that is leased to a tax-exempt entity in a |
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| 25 | 31 | | disqualified lease, as those terms are defined by Section 168(h), |
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| 26 | 32 | | Internal Revenue Code, are not eligible costs and expenses. |
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| 27 | 33 | | SECTION 2. The change in law made by this Act to Section |
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| 28 | 34 | | 171.901(4), Tax Code, applies only to costs and expenses incurred |
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| 29 | 35 | | on or after the effective date of this Act. |
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| 30 | 36 | | SECTION 3. This Act takes effect January 1, 2022. |
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| 31 | | - | ______________________________ ______________________________ |
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| 32 | | - | President of the Senate Speaker of the House |
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| 33 | | - | I certify that H.B. No. 3777 was passed by the House on May 5, |
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| 34 | | - | 2021, by the following vote: Yeas 88, Nays 54, 1 present, not |
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| 35 | | - | voting. |
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| 36 | | - | ______________________________ |
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| 37 | | - | Chief Clerk of the House |
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| 38 | | - | I certify that H.B. No. 3777 was passed by the Senate on May |
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| 39 | | - | 22, 2021, by the following vote: Yeas 29, Nays 1. |
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| 40 | | - | ______________________________ |
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| 41 | | - | Secretary of the Senate |
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| 42 | | - | APPROVED: _____________________ |
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| 43 | | - | Date |
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| 44 | | - | _____________________ |
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| 45 | | - | Governor |
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| 37 | + | * * * * * |
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