Bill Text: TX HB3354 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the transfer of certain unused franchise tax credits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-17 - Referred to Ways & Means [HB3354 Detail]
Download: Texas-2015-HB3354-Introduced.html
| 84R10830 CBH-F | ||
| By: Bohac | H.B. No. 3354 | |
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| relating to the transfer of certain unused franchise tax credits. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 18, Chapter 1 (H.B. 3), Acts of the 79th | ||
| Legislature, 3rd Called Session, 2006, is amended by adding | ||
| Subsections (h-1), (i-1), (j), and (k) to read as follows: | ||
| (h-1) In this subsection and Subsection (i-1) of this | ||
| section, "transfer" includes a sale. Notwithstanding Subsections | ||
| (e) and (f) of this section and subject to Subsection (k) of this | ||
| section, a corporation that had unused credits before January 1, | ||
| 2008, under former Subchapter P or Q, Chapter 171, Tax Code, that | ||
| expired under the terms of one of those former subchapters or under | ||
| Subsection (e) or (f) of this section, may transfer the right to the | ||
| expired credits to another taxpayer of this state. A transferred | ||
| credit is considered to be newly established by the taxpayer to | ||
| which the credit is transferred on the date the transfer is | ||
| complete. To be eligible to transfer the credits, the corporation | ||
| must obtain a certificate of transfer of credit from the | ||
| comptroller for the amount of the credits to be transferred. Not | ||
| later than the 30th day after the date of the transfer, the | ||
| corporation must submit to the comptroller a notice of the transfer | ||
| in a form prescribed by the comptroller. The notice must be | ||
| accompanied by a copy of the certificate of transfer issued by the | ||
| comptroller and specify: | ||
| (1) the number on the certificate of transfer; | ||
| (2) the amount of the corporation's unused credits | ||
| preceding the transfer; | ||
| (3) the date of the transfer; | ||
| (4) the amount of credits transferred; | ||
| (5) the tax identification numbers of the corporation | ||
| and the taxpayer to which the credits were transferred; | ||
| (6) the corporation's remaining amount of unused | ||
| credits after the transfer; and | ||
| (7) any other information the comptroller requires. | ||
| (i-1) The transfer of a credit under Subsection (h-1) of | ||
| this section is limited to an unused credit for which the | ||
| corporation was eligible before January 1, 2008, and does not | ||
| include credits authorized under former Subchapter Q-1, Chapter | ||
| 171, Tax Code, or credits that were created under the terms of a | ||
| written agreement between a taxpayer and the Texas Department of | ||
| Economic Development or its successor that was entered into before | ||
| June 1, 2006, and that continue to accrue under the terms provided | ||
| by Section 19 of this Act. The transferee of a credit under this | ||
| section obtains the credit subject to the same rights and | ||
| privileges as the transferor had on the date the credit was | ||
| originally established. The transfer of a credit under Subsection | ||
| (h-1) of this section does not extend or lessen the period during | ||
| which the credit may be claimed after the credit is newly | ||
| established by the taxpayer to which the credit is transferred as | ||
| provided by that subsection. If a corporation transfers a credit | ||
| that the corporation was not entitled to transfer at the time of the | ||
| transfer: | ||
| (1) the taxpayer to which the credit was transferred | ||
| may pursue any remedy authorized by law against the corporation and | ||
| may not pursue any remedy against the comptroller or this state; and | ||
| (2) the comptroller: | ||
| (A) may not allow the taxpayer to which the | ||
| credit was transferred to apply the credit on a report for a tax | ||
| listed in Subsection (j) of this section; or | ||
| (B) shall recover from the taxpayer the amount of | ||
| the credit the taxpayer claims on a report using any means | ||
| authorized by law. | ||
| (j) A taxpayer to which a credit is transferred under | ||
| Subsection (h-1) of this section may apply the credit against: | ||
| (1) the taxes due under Chapters 151, 152, 154, 155, | ||
| 156, 158, 160, 161, 162, 171, 181, 182, 183, 191, 201, 202, and 203, | ||
| Tax Code; and | ||
| (2) a contribution due under Subtitle A, Title 4, | ||
| Labor Code. | ||
| (k) A corporation may not transfer an unused tax credit | ||
| under Subsection (h-1) of this section after August 31, 2017. | ||
| SECTION 2. This Act applies only to a report originally due | ||
| on or after the effective date of this Act. | ||
| SECTION 3. This Act takes effect September 1, 2015. | ||
