88R11522 LHC-D
By: King of Hemphill H.B. No. 4095
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of a business entity to receive a credit
against the ad valorem taxes imposed by a school district on the
business entity's property in exchange for donating equipment to
the school district to be used in a course that may lead to a
commercial driver's license or commercial learner's permit and
providing that such a course may satisfy public high school
graduation requirements for electives.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 28.025(b-17), Education Code, is amended
to read as follows:
(b-17) The State Board of Education shall adopt rules to
ensure that a student may comply with the curriculum requirements
under Subsection (b-1)(6) by successfully completing:
(1) an advanced career and technical course, including
a course that may lead to an industry-recognized credential or
certificate or an associate degree; or
(2) a course that may lead to a commercial driver's
license or commercial learner's permit issued under Chapter 522,
Transportation Code.
SECTION 2. Chapter 31, Tax Code, is amended by adding
Section 31.038 to read as follows:
Sec. 31.038. TAX CREDIT FOR DONATION TO SUPPORT COURSE
RELATED TO COMMERCIAL DRIVER'S LICENSE OR COMMERCIAL LEARNER'S
PERMIT. (a) In this section:
(1) "Business entity" means a legal entity, including
a corporation or partnership, that is formed for the purpose of
making a profit.
(2) "Principal office" means the location where the
decision makers for a business entity conduct the daily affairs of
the business.
(b) An owner of property is entitled to a credit against the
taxes imposed in a tax year on that property by a school district if
the owner:
(1) is a business entity whose principal office is
located in this state; and
(2) with the approval of the school district, donates
a vehicle or equipment to the school district for use in a course
described by Section 28.025(b-17)(2), Education Code.
(c) The amount of the credit to which a property owner is
entitled under this section against the taxes imposed in a tax year
on the property by a school district is equal to the total value of
the vehicles or equipment described by Subsection (b) that the
property owner donated to the school district during the preceding
12-month period.
(d) If the amount of the credit to which a property owner is
entitled under this section in any tax year exceeds the amount of
tax imposed on the property in that tax year by a school district,
the excess amount may be carried forward and credited against the
taxes imposed in subsequent tax years. A property owner may
receive a credit under this section against the taxes imposed by the
school district until the earlier of:
(1) the first tax year in which the aggregate amount of
the credits received equals the value of the donated vehicle or
equipment; or
(2) the first tax year after the 10th tax year in which
the property owner receives the credit.
(e) For each year in which the property owner donates a
vehicle or equipment to a school district, the property owner must
file an application with the chief appraiser of the appraisal
district in which the property is located to receive a credit under
this section. The application must include an affidavit stating
the value of the donations made by the property owner during the
preceding 12-month period and include any relevant information or
documentation required by the application form.
(f) The chief appraiser shall forward a copy of the
application to the comptroller. For purposes of determining the
amount of the credit, the comptroller shall determine the value of a
vehicle or equipment donated under this section. The comptroller
may:
(1) consider the value submitted by the property owner
under Subsection (e); and
(2) set the value of the donated vehicle or equipment
in an amount the comptroller considers appropriate.
(g) The comptroller shall adopt rules for the
implementation and administration of this section, including
rules:
(1) prescribing the form of an application for the
credit and specifying the 12-month period during which donations
may be used to calculate the credit; and
(2) related to determining the value of vehicles and
equipment donated under this section.
SECTION 3. Section 28.025(b-17), Education Code, as amended
by this Act, applies beginning with the 2023-2024 school year.
SECTION 4. Section 31.038, Tax Code, as added by this Act,
applies only to ad valorem taxes imposed for a tax year beginning on
or after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2023.