89R2744 RDS-D
By: West S.B. No. 653
A BILL TO BE ENTITLED
AN ACT
relating to a refund of sales and use taxes paid on the purchase or
use of building materials used to construct certain subsidized
housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
by adding Section 151.4293 to read as follows:
Sec. 151.4293. REFUND FOR BUILDING MATERIALS USED IN
CERTAIN AFFORDABLE HOUSING PROJECTS. (a) In this section,
"qualifying affordable housing" means housing:
(1) that is located in this state;
(2) the construction of which is subsidized by a
federal or state tax credit issued for the purpose of constructing
affordable housing; and
(3) for which the state or federal tax credit
described by Subdivision (2) is awarded on or after September 1,
2025.
(b) A person is entitled to a refund in the amount and under
the conditions provided by this section of the taxes paid under this
chapter on the purchase or use of building materials used to
construct qualifying affordable housing.
(c) Subject to Subsections (d) and (e), the amount of the
refund to which a person is entitled under this section is equal to
the sum of:
(1) for each single-family home that is qualifying
affordable housing that the person constructs, the amount of the
taxes paid under this chapter on not more than $50,000 of building
materials purchased for the construction of the home during the
180-day period preceding the date the person files an application
for the refund under Subsection (f); and
(2) for each residential unit constructed by the
person in an apartment complex that is qualifying affordable
housing, the amount of the taxes paid under this chapter on not more
than $5,000 of building materials purchased for the construction of
the unit during the 180-day period preceding the date the person
files an application for the refund under Subsection (f).
(d) A person may not claim more than:
(1) $100,000 in refunds under Subsection (c)(1) in a
calendar year; and
(2) $100,000 in refunds under Subsection (c)(2) in a
180-day period.
(e) The total amount of refunds that may be awarded under
this section to all applicants in a state fiscal year may not exceed
$2 million. The refunds shall be allocated on a first-come,
first-served basis, based on the date each application is submitted
under Subsection (f).
(f) A person must apply to the comptroller in the manner
prescribed by the comptroller to receive a refund under this
section. A person may not again submit an application for a refund
before the 180th day after the date the person last submitted an
application for a refund under this section.
(g) The comptroller shall adopt rules necessary to
implement and administer this section.
SECTION 2. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and civil and criminal enforcement of the
liability for those taxes.
SECTION 3. This Act takes effect September 1, 2025.