Bill Text: TX SB1845 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to a franchise tax credit for certain large economic development projects, including certain electric generation facilities.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-20 - Referred to Finance [SB1845 Detail]

Download: Texas-2023-SB1845-Introduced.html
  88R7261 SRA-D
 
  By: Creighton S.B. No. 1845
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for certain large economic
  development projects, including certain electric generation
  facilities.
         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 CERTAIN ECONOMIC DEVELOPMENT
  PROJECTS
         Sec. 171.701.  DEFINITION.  In this subchapter, "qualifying
  electric generation facility" means an electric generation
  facility that does not use solar or wind resources to generate
  electricity.
         Sec. 171.702.  APPLICABILITY.  This subchapter applies only
  to a taxable entity that, during the period beginning on January 1
  of a year and ending December 31 of that same year, invests at least
  $450 million in a business facility located in this state.
         Sec. 171.703.  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. 171.704.  AMOUNT OF CREDIT; LIMITATIONS.  (a)  Except as
  otherwise provided by this section, a taxable entity may claim a
  credit on a report in an amount that is the greater of:
               (1)  the product of $5,250 and the number of new jobs
  created by the taxable entity during the period described by
  Section 171.702; or
               (2)  the product of $10,000 and the number of megawatts
  a qualifying electric generation facility produces, if the business
  facility described by Section 171.702 is a qualifying electric
  generation facility.
         (b)  The total credit claimed under this subchapter on a
  report, including the amount of any carryforward under Section
  171.705, may not exceed the lesser of:
               (1)  the amount of franchise tax due for the report
  after applying any other applicable credits; or
               (2)  $23,650,000.
         (c)  A taxable entity may not claim a credit under Subsection
  (a) on more than five consecutive reports.
         Sec. 171.705.  CARRYFORWARD. (a)  A taxable entity that is
  eligible for a credit under this subchapter that exceeds the
  limitation under Section 171.704(b) may carry the unused credit
  forward for not more than 10 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 171.704(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. 171.706.  APPLICATION FOR CREDIT.  (a)  A taxable entity
  must apply for a credit under this subchapter on or with the report
  for which the credit is claimed.
         (b)  The comptroller shall prescribe the form and method of
  applying for a credit under this section.  A taxable entity must use
  the form and method prescribed by the comptroller to apply for the
  credit.
         (c)  The comptroller may require a taxable entity to submit
  with an application any information the comptroller determines is
  necessary to determine whether the taxable entity meets the
  requirements of Section 171.702.
         Sec. 171.707.  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. 171.708.  RULES.  The comptroller shall adopt rules
  necessary to implement and administer this subchapter.
         SECTION 2.  This Act applies only to an entity that:
               (1)  makes the investment required by Section 171.702,
  Tax Code, as added by this Act, on or after January 1, 2024; or
               (2)  if the new business facility described by Section
  171.702, Tax Code, as added by this Act, is a qualifying electric
  generation facility, completes the facility or makes the investment
  required by that section on or after January 1, 2024.
         SECTION 3.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 4.  This Act takes effect January 1, 2024.
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