Bill Text: TX HB1195 | 2021-2022 | 87th Legislature | Engrossed
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 30-7)
Status: (Passed) 2021-05-08 - Effective immediately [HB1195 Detail]
Download: Texas-2021-HB1195-Engrossed.html
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-Engrossed.html
By: Geren, Goldman, Frullo, Meyer, Bonnen, | H.B. No. 1195 | |
et al. |
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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 that: | ||
(1) is received by a taxable entity in loans or grants: | ||
(A) 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) and the Consolidated Appropriations Act, 2021 (Pub. L. | ||
No. 116-260); or | ||
(B) 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) Sections 276 and 278 of the Consolidated | ||
Appropriations Act, 2021 (Pub. L. No. 116-260); or | ||
(B) Section 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. |