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


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
 
 
  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       
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