Bill Text: TX SB1231 | 2025-2026 | 89th Legislature | Introduced

Texas Senate Bill 1231

Introduced

Bill Title: Relating to a franchise tax credit for taxable entities that purchase certain theft deterrent and property loss prevention equipment.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-11 - Filed [SB1231 Detail]

Download: Texas-2025-SB1231-Introduced.html

	89R4902 JBD-D

	By: Creighton	S.B. No. 1231



	A BILL TO BE ENTITLED
	AN ACT
	relating to a franchise tax credit for taxable entities that
	purchase certain theft deterrent and property loss prevention
	equipment.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 171, Tax Code, is amended by adding
	Subchapter N to read as follows:
	SUBCHAPTER N. TAX CREDIT FOR PURCHASE OF THEFT DETERRENT AND
	PROPERTY LOSS PREVENTION EQUIPMENT
	Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is
	entitled to a credit in the amount and under the conditions provided
	by this subchapter against the tax imposed under this chapter.
	Sec. 171.702. QUALIFICATION. A taxable entity qualifies
	for a credit under this subchapter if the taxable entity purchases
	one or more items of theft deterrent or property loss prevention
	equipment included on the list of eligible equipment adopted under
	Section 171.707.
	Sec. 171.703. AMOUNT OF CREDIT; LIMITATION. (a) Subject to
	Subsection (b), the amount of the credit for a report is equal to
	the total amount of costs and expenses incurred by a taxable entity
	to purchase items described by Section 171.702 during the period on
	which the report is based, including the purchase price of those
	items.
	(b) The total credit claimed on a report, including the
	amount of any carryforward under Section 171.704, may not exceed
	the amount of franchise tax due for the report after applying all
	other applicable credits.
	Sec. 171.704. CARRYFORWARD. (a) A taxable entity that is
	eligible for a credit that exceeds the limitation under Section
	171.703(b) may carry the unused credit forward for not more than
	five consecutive reports.
	(b) A carryforward is considered the remaining portion of a
	credit that cannot be claimed in the current year because of the
	limitation under Section 171.703(b).
	(c) Credits, including a carryforward, are considered to be
	used in the following order:
	(1) a carryforward under this subchapter; and
	(2) a current year credit.
	Sec. 171.705. APPLICATION FOR CREDIT. (a) A taxable entity
	must apply for a credit under this subchapter on or with the report
	for the period for which the credit is claimed.
	(b) The comptroller shall prescribe the form and method a
	taxable entity must use to apply for the credit.
	(c) The comptroller may require a taxable entity to submit
	with an application any information needed to determine whether the
	taxable entity qualifies for the credit or the amount of the credit.
	Sec. 171.706. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable
	entity may not convey, assign, or transfer the credit allowed under
	this subchapter to another taxable entity unless substantially all
	of the assets of the taxable entity are conveyed, assigned, or
	transferred in the same transaction.
	Sec. 171.707. RULES. The comptroller shall adopt rules
	necessary to implement and administer this subchapter, including a
	list of equipment useful or necessary to deter theft or prevent
	property loss that is eligible for the credit.
	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 January 1, 2026.