Bill Text: TX HB1195 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to the franchise tax treatment of certain loans and grants made under the federal Coronavirus Aid, Relief, and Economic Security Act.

Spectrum: Moderate Partisan Bill (Republican 30-7)

Status: (Passed) 2021-05-08 - Effective immediately [HB1195 Detail]

Download: Texas-2021-HB1195-Enrolled.html

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H.B. No. 1195

AN ACT
relating to the franchise tax treatment of certain loans and grants
made under the federal Coronavirus Aid, Relief, and Economic
Security Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended
by adding Section 171.10131 to read as follows:
Sec. 171.10131. PROVISIONS RELATED TO CERTAIN MONEY
RECEIVED FOR COVID-19 RELIEF. (a) In this section, "qualifying
loan or grant proceeds" means the amount of money received by a
taxable entity that:
(1) is:
(A) a loan or grant under the Coronavirus Aid,
Relief, and Economic Security Act (15 U.S.C. Section 9001 et seq.),
as amended by the Paycheck Protection Program Flexibility Act of
2020 (Pub. L. No. 116-142), the Consolidated Appropriations Act,
2021 (Pub. L. No. 116-260), the American Rescue Plan Act of 2021
(Pub. L. No. 117-2), and the PPP Extension Act of 2021 (Pub. L.
No. 117-6);
(B) a shuttered venue operator grant under
Section 324 of the Consolidated Appropriations Act, 2021 (Pub. L.
No. 116-260), as amended by Section 5005 of the American Rescue
Plan Act of 2021 (Pub. L. No. 117-2);
(C) microloan program recovery assistance under
Section 329 of the Consolidated Appropriations Act, 2021 (Pub. L.
No. 116-260); or
(D) a grant from the restaurant revitalization
fund established under Section 5003 of the American Rescue Plan Act
of 2021 (Pub. L. No. 117-2); and
(2) is not included in the taxable entity's gross
income for purposes of federal income taxation under:
(A) Section 276 or 278 of the Consolidated
Appropriations Act, 2021 (Pub. L. No. 116-260); or
(B) Section 9672 or 9673 of the American Rescue
Plan Act of 2021 (Pub. L. No. 117-2).
(b) Notwithstanding any other law, a taxable entity:
(1) shall exclude from its total revenue, to the
extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or
(c)(3), qualifying loan or grant proceeds;
(2) may include as a cost of goods sold under Section
171.1012 any expense paid using qualifying loan or grant proceeds
to the extent the expense is otherwise includable as a cost of goods
sold under that section; and
(3) may include as compensation under Section 171.1013
any expense paid using qualifying loan or grant proceeds to the
extent the expense is otherwise includable as compensation under
that section.
SECTION 2. This Act applies only to a report originally due
on or after January 1, 2021.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1195 was passed by the House on April
1, 2021, by the following vote: Yeas 148, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1195 on April 23, 2021, by the following vote: Yeas 143, Nays
1, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1195 was passed by the Senate, with
amendments, on April 19, 2021, by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor