Texas 2021 - 87th Regular

Texas Senate Bill SB1567 Compare Versions

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Old	New	Differences
1	1	87R1487 SMT-F
2	2	By: Lucio S.B. No. 1567
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. 234.0001. 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 for the construction or rehabilitation of
22	22	the property.
23	23	(3) "State premium tax liability" means liability
24	24	incurred by an entity under Chapter 222.
25	25	(4) "Supportive housing property" means a residential
26	26	rental development consisting of integrated, affordable, and
27	27	accessible housing that provides residents with the opportunity to
28	28	receive assistance in coordinating on-site or off-site
29	29	health-related and other services and supports that foster
30	30	independence in living and decision-making for persons with
31	31	disabilities and persons who are elderly.
32	32	Sec. 234.0002. ELIGIBILITY FOR CREDIT. (a) An entity is
33	33	eligible to apply for and claim a credit against state premium tax
34	34	liability for eligible costs and expenses in the amount and under
35	35	the limitations provided by this chapter if:
36	36	(1) the supportive housing property is placed in
37	37	service on or after September 1, 2021; and
38	38	(2) the total amount of the eligible costs and
39	39	expenses incurred by the entity exceeds $5,000.
40	40	(b) An entity may be eligible for a credit under this
41	41	chapter regardless of whether the entity incurs state premium tax
42	42	liability.
43	43	Sec. 234.0003. CERTIFICATION OF ELIGIBILITY. (a) Before
44	44	applying for, claiming, selling, or assigning a credit under this
45	45	chapter, the entity that constructed or rehabilitated the
46	46	supportive housing property must request from the corporation a
47	47	certificate of eligibility on which the corporation certifies that
48	48	the costs and expenses incurred meet the definition of eligible
49	49	costs and expenses. The entity must include with the entity's
50	50	request information about the property that is sufficient for the
51	51	corporation to determine whether the property meets the definition
52	52	of a supportive housing property.
53	53	(b) The corporation shall issue a certificate of
54	54	eligibility to an entity that has incurred eligible costs and
55	55	expenses as provided by this chapter. The certificate must:
56	56	(1) confirm that the property to which the eligible
57	57	costs and expenses relate is supportive housing property; and
58	58	(2) confirm the date the supportive housing property
59	59	was placed in service or, if the property is not in service,
60	60	estimate the date the property will be placed in service.
61	61	(c) The corporation by rule shall prescribe procedures by
62	62	which the corporation may allocate credits under this chapter. The
63	63	corporation may not certify eligible costs and expenses that exceed
64	64	the annual limit provided by Section 234.0004(d).
65	65	Sec. 234.0004. AMOUNT OF CREDIT; LIMITATIONS. (a) The
66	66	total credit under this chapter that may be claimed with respect to
67	67	a single supportive housing property may not exceed 20 percent of
68	68	the total eligible costs and expenses incurred in the construction
69	69	or rehabilitation of the property.
70	70	(b) The total credit that may be claimed on a tax report,
71	71	including the amount of any carryforward under Section 234.0005,
72	72	may not exceed the amount of state premium tax liability due for the
73	73	report after all other applicable tax credits.
74	74	(c) Eligible costs and expenses may be counted only once in
75	75	determining the amount of the tax credit available, and more than
76	76	one entity may not claim a credit for the same eligible costs and
77	77	expenses.
78	78	(d) The total amount of tax credits that may be claimed by
79	79	all entities under this chapter may not exceed $5 million in a state
80	80	fiscal year.
81	81	Sec. 234.0005. CARRYFORWARD. (a) If an entity is eligible
82	82	for a credit that exceeds the limitation under Section 234.0004(b),
83	83	the entity may carry the unused credit forward for not more than
84	84	five consecutive tax reports.
85	85	(b) A carryforward is considered the remaining portion of a
86	86	credit that cannot be claimed in the current year because of the
87	87	limitation under Section 234.0004(b).
88	88	Sec. 234.0006. APPLICATION FOR CREDIT; CLAIMING CREDIT.
89	89	(a) An entity must apply for a credit under this chapter on a form
90	90	promulgated by the comptroller for that purpose.
91	91	(b) An entity shall include with the application:
92	92	(1) a copy of the certificate of eligibility issued
93	93	under Section 234.0003;
94	94	(2) an audited cost report issued by a certified
95	95	public accountant, as defined by Section 901.002, Occupations Code,
96	96	that itemizes the eligible costs and expenses incurred by the
97	97	entity;
98	98	(3) an attestation of the total eligible costs and
99	99	expenses incurred by the entity; and
100	100	(4) any other information required by the comptroller
101	101	to sufficiently demonstrate that the entity is eligible for the
102	102	credit and to determine the amount of the credit.
103	103	(c) The burden of establishing eligibility for and the value
104	104	of the credit is on the entity.
105	105	(d) For purposes of approving the credit, the comptroller
106	106	may rely on the audited cost report provided by the entity that
107	107	requested the credit.
108	108	(e) The comptroller shall issue a credit certificate to an
109	109	entity the comptroller determines is eligible for a credit under
110	110	this chapter indicating that the entity is the owner of the credit
111	111	and the amount of credit available to the entity.
112	112	(f) An entity may claim a credit under this chapter on or
113	113	with the tax report due under Section 222.005. The entity shall
114	114	include with each tax report on which a credit is claimed the
115	115	certificate issued by the comptroller under Subsection (e).
116	116	Sec. 234.0007. SALE OR ASSIGNMENT OF CREDIT. (a) An entity
117	117	that incurs eligible costs and expenses may sell or assign all or
118	118	part of the credit that may be claimed for those costs and expenses
119	119	to one or more entities, and any entity to which all or part of the
120	120	credit is sold or assigned may sell or assign all or part of the
121	121	credit to another entity. There is no limit on the total number of
122	122	transactions for the sale or assignment of all or part of the total
123	123	credit authorized under this chapter. Collectively all transfers
124	124	are subject to the maximum total limits provided by Section
125	125	234.0004.
126	126	(b) An entity that sells or assigns a credit under this
127	127	chapter to another entity shall provide to the purchaser or
128	128	assignee:
129	129	(1) a copy of the certificate of eligibility issued
130	130	under Section 234.0003; and
131	131	(2) the audited cost report described by Section
132	132	234.0006(b).
133	133	(c) An entity that sells or assigns a credit under this
134	134	section and the entity to which the credit is sold or assigned shall
135	135	jointly submit written notice of the sale or assignment to the
136	136	comptroller on a form promulgated by the comptroller not later than
137	137	the 30th day after the date of the sale or assignment. The notice
138	138	must include:
139	139	(1) the date of the sale or assignment;
140	140	(2) the amount of the credit sold or assigned;
141	141	(3) the names and federal tax identification numbers
142	142	of the entity that sold or assigned the credit or part of the credit
143	143	and the entity to which the credit or part of the credit was sold or
144	144	assigned; and
145	145	(4) the amount of the credit owned by the selling or
146	146	assigning entity before the sale or assignment and the amount the
147	147	selling or assigning entity retained, if any, after the sale or
148	148	assignment.
149	149	(d) The sale or assignment of a credit in accordance with
150	150	this section does not extend the period for which a credit may be
151	151	carried forward and does not increase the total amount of the credit
152	152	that may be claimed. After an entity claims a credit for eligible
153	153	costs and expenses, another entity may not use the same costs and
154	154	expenses as the basis for claiming a credit.
155	155	(e) Notwithstanding the requirements of this chapter, a
156	156	credit earned or purchased by, or assigned to, a partnership,
157	157	limited liability company, S corporation, or other pass-through
158	158	entity may be allocated to the partners, members, or shareholders
159	159	of that entity and claimed under this chapter in accordance with the
160	160	provisions of any agreement among the partners, members, or
161	161	shareholders and without regard to the ownership interest of the
162	162	partners, members, or shareholders in the supportive housing
163	163	property, provided that the entity that claims the credit must be
164	164	subject to the tax imposed under Chapter 222.
165	165	Sec. 234.0008. RETALIATORY TAX. An entity that claims a
166	166	credit under this chapter is not required to pay any additional
167	167	retaliatory tax levied under Chapter 281 as a result of the credit.
168	168	Sec. 234.0009. RULES. The corporation and the comptroller
169	169	shall adopt rules necessary to implement this chapter.
170	170	SECTION 2. This Act applies only to a report originally due
171	171	on or after the effective date of this Act.
172	172	SECTION 3. This Act takes effect September 1, 2023.