| 1 | 1 | | 89R2744 RDS-D |
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| 2 | 2 | | By: West S.B. No. 653 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to a refund of sales and use taxes paid on the purchase or |
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| 10 | 10 | | use of building materials used to construct certain subsidized |
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| 11 | 11 | | housing. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
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| 14 | 14 | | by adding Section 151.4293 to read as follows: |
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| 15 | 15 | | Sec. 151.4293. REFUND FOR BUILDING MATERIALS USED IN |
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| 16 | 16 | | CERTAIN AFFORDABLE HOUSING PROJECTS. (a) In this section, |
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| 17 | 17 | | "qualifying affordable housing" means housing: |
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| 18 | 18 | | (1) that is located in this state; |
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| 19 | 19 | | (2) the construction of which is subsidized by a |
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| 20 | 20 | | federal or state tax credit issued for the purpose of constructing |
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| 21 | 21 | | affordable housing; and |
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| 22 | 22 | | (3) for which the state or federal tax credit |
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| 23 | 23 | | described by Subdivision (2) is awarded on or after September 1, |
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| 24 | 24 | | 2025. |
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| 25 | 25 | | (b) A person is entitled to a refund in the amount and under |
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| 26 | 26 | | the conditions provided by this section of the taxes paid under this |
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| 27 | 27 | | chapter on the purchase or use of building materials used to |
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| 28 | 28 | | construct qualifying affordable housing. |
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| 29 | 29 | | (c) Subject to Subsections (d) and (e), the amount of the |
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| 30 | 30 | | refund to which a person is entitled under this section is equal to |
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| 31 | 31 | | the sum of: |
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| 32 | 32 | | (1) for each single-family home that is qualifying |
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| 33 | 33 | | affordable housing that the person constructs, the amount of the |
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| 34 | 34 | | taxes paid under this chapter on not more than $50,000 of building |
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| 35 | 35 | | materials purchased for the construction of the home during the |
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| 36 | 36 | | 180-day period preceding the date the person files an application |
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| 37 | 37 | | for the refund under Subsection (f); and |
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| 38 | 38 | | (2) for each residential unit constructed by the |
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| 39 | 39 | | person in an apartment complex that is qualifying affordable |
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| 40 | 40 | | housing, the amount of the taxes paid under this chapter on not more |
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| 41 | 41 | | than $5,000 of building materials purchased for the construction of |
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| 42 | 42 | | the unit during the 180-day period preceding the date the person |
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| 43 | 43 | | files an application for the refund under Subsection (f). |
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| 44 | 44 | | (d) A person may not claim more than: |
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| 45 | 45 | | (1) $100,000 in refunds under Subsection (c)(1) in a |
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| 46 | 46 | | calendar year; and |
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| 47 | 47 | | (2) $100,000 in refunds under Subsection (c)(2) in a |
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| 48 | 48 | | 180-day period. |
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| 49 | 49 | | (e) The total amount of refunds that may be awarded under |
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| 50 | 50 | | this section to all applicants in a state fiscal year may not exceed |
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| 51 | 51 | | $2 million. The refunds shall be allocated on a first-come, |
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| 52 | 52 | | first-served basis, based on the date each application is submitted |
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| 53 | 53 | | under Subsection (f). |
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| 54 | 54 | | (f) A person must apply to the comptroller in the manner |
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| 55 | 55 | | prescribed by the comptroller to receive a refund under this |
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| 56 | 56 | | section. A person may not again submit an application for a refund |
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| 57 | 57 | | before the 180th day after the date the person last submitted an |
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| 58 | 58 | | application for a refund under this section. |
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| 59 | 59 | | (g) The comptroller shall adopt rules necessary to |
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| 60 | 60 | | implement and administer this section. |
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| 61 | 61 | | SECTION 2. The change in law made by this Act does not |
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| 62 | 62 | | affect tax liability accruing before the effective date of this |
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| 63 | 63 | | Act. That liability continues in effect as if this Act had not been |
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| 64 | 64 | | enacted, and the former law is continued in effect for the |
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| 65 | 65 | | collection of taxes due and civil and criminal enforcement of the |
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| 66 | 66 | | liability for those taxes. |
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| 67 | 67 | | SECTION 3. This Act takes effect September 1, 2025. |
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