| 1 | 1 | | By: Turner H.B. No. 3487 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to certain expenditures by public institutions of higher |
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| 7 | 7 | | education and university systems that are eligible for certain tax |
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| 8 | 8 | | credits. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. (a) Section 171.9015(b), Tax Code, as effective |
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| 11 | 11 | | January 1, 2022, is amended to read as follows: |
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| 12 | 12 | | (b) Except as provided by Subsection (c), the depreciation |
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| 13 | 13 | | and tax-exempt use provisions of Section 47(c)(2), Internal Revenue |
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| 14 | 14 | | Code, do not apply to costs and expenses incurred by an entity |
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| 15 | 15 | | exempt from the tax imposed under this chapter by Section 171.063 of |
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| 16 | 16 | | this code or by an institution of higher education or university |
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| 17 | 17 | | system as defined by Section 61.003, Education Code, and those |
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| 18 | 18 | | costs and expenses are eligible costs and expenses if the other |
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| 19 | 19 | | provisions of Section 47(c)(2), Internal Revenue Code, are |
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| 20 | 20 | | satisfied. |
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| 21 | 21 | | (b) Effective January 1, 2031, Section 171.9015(b), Tax |
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| 22 | 22 | | Code, as effective January 1, 2022, is amended to read as follows: |
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| 23 | 23 | | (b) Except as provided by Subsection (c), the depreciation |
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| 24 | 24 | | and tax-exempt use provisions of Section 47(c)(2), Internal Revenue |
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| 25 | 25 | | Code, do not apply to costs and expenses incurred by an entity |
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| 26 | 26 | | exempt from the tax imposed under this chapter by Section 171.063, |
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| 27 | 27 | | and those costs and expenses are eligible costs and expenses if the |
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| 28 | 28 | | other provisions of Section 47(c)(2), Internal Revenue Code, are |
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| 29 | 29 | | satisfied. |
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| 30 | 30 | | SECTION 2. (a) Section 171.9015(b), Tax Code, as amended |
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| 31 | 31 | | by Section 1(a) of this Act, applies only to costs and expenses |
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| 32 | 32 | | incurred on or after the effective date of this Act. |
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| 33 | 33 | | (b) Section 171.9015(b), Tax Code, as amended by Section |
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| 34 | 34 | | 1(b) of this Act, applies only to costs and expenses incurred on or |
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| 35 | 35 | | after January 1, 2031. |
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| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2023. |
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