Bill Text: TX SB1081 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a deduction under the franchise tax for certain contracts with the federal government.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2019-04-15 - Left pending in committee [SB1081 Detail]
Download: Texas-2019-SB1081-Introduced.html
86R2088 BEF-D | ||
By: Taylor | S.B. No. 1081 |
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relating to a deduction under the franchise tax for certain | ||
contracts with the federal government. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 171.101(a), Tax Code, is amended to read | ||
as follows: | ||
(a) The taxable margin of a taxable entity is computed by: | ||
(1) determining the taxable entity's margin, which is | ||
the lesser of: | ||
(A) the amount provided by this paragraph, which | ||
is the lesser of: | ||
(i) 70 percent of the taxable entity's total | ||
revenue from its entire business, as determined under Section | ||
171.1011; or | ||
(ii) an amount equal to the taxable entity's | ||
total revenue from its entire business as determined under Section | ||
171.1011 minus $1 million; or | ||
(B) an amount computed by determining the taxable | ||
entity's total revenue from its entire business under Section | ||
171.1011 and subtracting the greater of: | ||
(i) $1 million; or | ||
(ii) an amount equal to the sum of: | ||
(a) at the election of the taxable | ||
entity, either: | ||
(1) cost of goods sold, as | ||
determined under Section 171.1012; or | ||
(2) compensation, as determined | ||
under Section 171.1013; [ |
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(b) any compensation, as determined | ||
under Section 171.1013, paid to an individual during the period the | ||
individual is serving on active duty as a member of the armed forces | ||
of the United States if the individual is a resident of this state | ||
at the time the individual is ordered to active duty and the cost of | ||
training a replacement for the individual; and | ||
(c) any costs not already subtracted | ||
under Sub-subparagraph (a) that are properly allowable under the | ||
Federal Acquisition Regulation (48 C.F.R. Chapter 1), or a | ||
successor regulation, for contracts, or subcontracts supporting | ||
those contracts, for the sale of goods or services to the federal | ||
government by a taxable entity that is a party to at least one | ||
contract subject to the requirements of 48 C.F.R. Chapter 2; | ||
(2) apportioning the taxable entity's margin to this | ||
state as provided by Section 171.106 to determine the taxable | ||
entity's apportioned margin; and | ||
(3) subtracting from the amount computed under | ||
Subdivision (2) any other allowable deductions to determine the | ||
taxable entity's taxable margin. | ||
SECTION 2. This Act applies only to a report originally due | ||
on or after January 1, 2020. | ||
SECTION 3. This Act takes effect January 1, 2020. |