Texas 2023 - 88th Regular

Texas House Bill HB4371 Compare Versions

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Version 2 (New)

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1	1	88R13363 CJD-F
2	2	By: Shine H.B. No. 4371
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from sales and use taxes for certain items
8	8	used by or for certain life sciences campuses.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended
11	11	by adding Section 151.360 to read as follows:
12	12	Sec. 151.360. ITEMS USED FOR CERTAIN LIFE SCIENCES
13	13	CAMPUSES. (a) In this section:
14	14	(1) "Affiliated group" has the meaning assigned by
15	15	Section 171.0001.
16	16	(2) "Life sciences activity" includes, when conducted
17	17	with respect to an existing or potential life sciences product or
18	18	service:
19	19	(A) discovery;
20	20	(B) research, including pre-clinical and
21	21	clinical;
22	22	(C) development;
23	23	(D) testing;
24	24	(E) clinical trials;
25	25	(F) regulatory application and review;
26	26	(G) dispensation;
27	27	(H) administration;
28	28	(I) prescription;
29	29	(J) manufacture; and
30	30	(K) production.
31	31	(3) "Life sciences campus" means a building that has
32	32	at least 1,500,000 square feet of space and any other buildings and
33	33	improvements to real property:
34	34	(A) that are owned by a single owner or by
35	35	multiple owners that are members of the same affiliated group;
36	36	(B) that are located or to be located on a single
37	37	parcel of land, or on multiple parcels of land, if each parcel of
38	38	land is:
39	39	(i) located entirely within a county:
40	40	(a) with a population of one million
41	41	or more;
42	42	(b) in which all or part of a
43	43	municipality with a population of one million or more is located;
44	44	and
45	45	(c) that is located adjacent to a
46	46	county with a population of 2.5 million or more; and
47	47	(ii) owned by a single owner or by multiple
48	48	owners that are members of the same affiliated group;
49	49	(C) the owner or owners of which, on or before
50	50	January 1, 2030, make a capital investment of at least $1 billion to
51	51	construct, refurbish, repair, restore, remodel, or modify for use
52	52	primarily to conduct life sciences activities and other activities
53	53	necessary and essential to life sciences activities; and
54	54	(D) that, on completion of the construction,
55	55	refurbishment, repair, restoration, remodeling, or modification,
56	56	are used by an owner or tenant primarily to conduct life sciences
57	57	activities and other activities necessary and essential to life
58	58	sciences activities.
59	59	(4) "Life sciences product or service" includes a
60	60	drug, medicine, therapeutic appliance, device, or supply, another
61	61	similar or related item, or an item intended for use with or as a
62	62	component of an item listed in this subdivision if the item is
63	63	intended to:
64	64	(A) be dispensed, administered, or prescribed
65	65	for use in the diagnosis, cure, mitigation, treatment, or
66	66	prevention of disease in humans or other animals; or
67	67	(B) affect the structure or function of the body
68	68	of humans or other animals.
69	69	(5) "Tenant" means a person who rents space in a life
70	70	sciences campus and whose activities at the campus are primarily
71	71	life sciences activities.
72	72	(b) The following are exempted from the taxes imposed by
73	73	this chapter:
74	74	(1) tangible personal property that is used to
75	75	construct, refurbish, repair, restore, remodel, or modify an
76	76	improvement to real property that is:
77	77	(A) part of a life sciences campus; or
78	78	(B) installed at or incorporated into an
79	79	improvement to real property that is part of a life sciences campus;
80	80	(2) labor to construct, refurbish, repair, restore,
81	81	remodel, or modify an improvement to real property that is part of a
82	82	life sciences campus;
83	83	(3) tangible personal property that is purchased,
84	84	leased, or rented by a tenant or an owner of a life sciences campus
85	85	for use primarily in the conduct of life sciences activities at the
86	86	life sciences campus; and
87	87	(4) gas and electricity that is purchased by a tenant
88	88	or an owner of a life sciences campus for use at the life sciences
89	89	campus.
90	90	(c) The exemption provided by this section does not apply to
91	91	the taxes imposed under Chapter 321, 322, or 323.
92	92	SECTION 2. Sections 151.317(a) and (b), Tax Code, are
93	93	amended to read as follows:
94	94	(a) Subject to Sections 151.1551, 151.359, [and] 151.3595,
95	95	and 151.360 and Subsection (d) of this section, gas and electricity
96	96	are exempted from the taxes imposed by this chapter when sold for:
97	97	(1) residential use;
98	98	(2) use in powering equipment exempt under Section
99	99	151.318 or 151.3185 by a person processing tangible personal
100	100	property for sale as tangible personal property, other than
101	101	preparation or storage of prepared food described by Section
102	102	151.314(c-2);
103	103	(3) use in lighting, cooling, and heating in the
104	104	manufacturing area during the actual manufacturing or processing of
105	105	tangible personal property for sale as tangible personal property,
106	106	other than preparation or storage of prepared food described by
107	107	Section 151.314(c-2);
108	108	(4) use directly in exploring for, producing, or
109	109	transporting, a material extracted from the earth;
110	110	(5) use in agriculture, including dairy or poultry
111	111	operations and pumping for farm or ranch irrigation;
112	112	(6) use directly in electrical processes, such as
113	113	electroplating, electrolysis, and cathodic protection;
114	114	(7) use directly in the off-wing processing, overhaul,
115	115	or repair of a jet turbine engine or its parts for a certificated or
116	116	licensed carrier of persons or property;
117	117	(8) use directly in providing, under contracts with or
118	118	on behalf of the United States government or foreign governments,
119	119	defense or national security-related electronics, classified
120	120	intelligence data processing and handling systems, or
121	121	defense-related platform modifications or upgrades;
122	122	(9) use directly by a data center or large data center
123	123	project that is certified by the comptroller as a qualifying data
124	124	center under Section 151.359 or a qualifying large data center
125	125	project under Section 151.3595 in the processing, storage, and
126	126	distribution of data;
127	127	(10) a direct or indirect use, consumption, or loss of
128	128	electricity by an electric utility engaged in the purchase of
129	129	electricity for resale; [or]
130	130	(11) use in timber operations, including pumping for
131	131	irrigation of timberland; or
132	132	(12) use at a life sciences campus that qualifies for
133	133	the exemption provided by Section 151.360.
134	134	(b) The sale, production, distribution, lease, or rental
135	135	of, and the use, storage, or other consumption in this state of, gas
136	136	and electricity sold for the uses listed in Subsection (a), are
137	137	exempted from the taxes imposed by a municipality under Chapter 321
138	138	except as provided by Sections 151.359(j), 151.360(c), and 321.105.
139	139	SECTION 3. The change in law made by this Act does not
140	140	affect tax liability accruing before the effective date of this
141	141	Act. That liability continues in effect as if this Act had not been
142	142	enacted, and the former law is continued in effect for the
143	143	collection of taxes due and for civil and criminal enforcement of
144	144	the liability for those taxes.
145	145	SECTION 4. This Act takes effect September 1, 2023.