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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 29-8)

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

Download: Texas-2021-HB1195-Introduced.html
 
 
  By: Geren H.B. No. 1195
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the forgiveness of a loan made under the Paycheck
  Protection Program for franchise tax purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 171.1011, Tax Code is amended by adding
  subsection (y) to read as follows:
         (y)  Total revenue does not include any amount of loan
  forgiven under the Paycheck Protection Program, as provided for
  under section 1106 of the Coronavirus Aid, Relief, and Economic
  Security Act, as amended by the Paycheck Protection Program
  Flexibility Act. Qualifying expenses paid with such loan proceeds
  may be included in the determination of cost of goods sold under
  Section 171.1012 or in the determination of compensation under
  Section 171.1013.
         SECTION 2.  This Act applies only to a report originally due
  on or after January 1, 2021.
         SECTION 3.  Except as provided in SECTION 2 of this Act, this
  Act takes effect September 1, 2021.
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