| 1 | 1 | | By: Blanco S.B. No. 2606 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the franchise and insurance premium tax credit for the |
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| 9 | 9 | | certified rehabilitation of certified historic structures. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 172.101(b), Tax Code, is amended by |
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| 12 | 12 | | adding Subdivision (4) to read as follows: |
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| 13 | 13 | | (4) "Distressed area" means an area of land located |
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| 14 | 14 | | entirely in a census tract with: |
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| 15 | 15 | | (A) a poverty rate equal to or greater than 40 |
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| 16 | 16 | | percent; |
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| 17 | 17 | | (B) a median family income of not more than 40 |
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| 18 | 18 | | percent of the area median family income that is established by the |
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| 19 | 19 | | United States Department of Housing and Urban Development; or |
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| 20 | 20 | | (C) an unemployment rate of at least 2.5 times |
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| 21 | 21 | | the national average unemployment rate. |
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| 22 | 22 | | SECTION 2. Section 172.106, Tax Code, is amended by |
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| 23 | 23 | | amending Subsection (a) and adding Subsection (a-1) to read as |
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| 24 | 24 | | follows: |
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| 25 | 25 | | (a) Except as provided by Subsection (a-1), the [The] total |
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| 26 | 26 | | amount of the credit under this chapter with respect to the |
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| 27 | 27 | | rehabilitation of a single certified historic structure that may be |
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| 28 | 28 | | claimed may not exceed 25 percent of the total eligible costs and |
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| 29 | 29 | | expenses incurred in the certified rehabilitation of the certified |
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| 30 | 30 | | historic structure. |
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| 31 | 31 | | (a-1) The total amount of the credit under this chapter that |
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| 32 | 32 | | may be claimed with respect to the rehabilitation of a single |
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| 33 | 33 | | certified historic structure located in an area that is a |
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| 34 | 34 | | distressed area on the date the eligible costs and expenses are |
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| 35 | 35 | | incurred may not exceed 35 percent of those costs and expenses |
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| 36 | 36 | | incurred in the certified rehabilitation of the certified historic |
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| 37 | 37 | | structure. |
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| 38 | 38 | | SECTION 3. The changes in law made by this Act apply only to |
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| 39 | 39 | | a tax report originally due on or after the effective date of this |
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| 40 | 40 | | Act. |
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| 41 | 41 | | SECTION 4. This Act takes effect January 1, 2026. |
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