Bill Text: TX HB1860 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to a deduction under the franchise tax for certain contracts with the federal government.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-05-07 - Committee report sent to Calendars [HB1860 Detail]
Download: Texas-2013-HB1860-Comm_Sub.html
83R24452 TJB-F | |||
By: Button, N. Gonzalez of El Paso | H.B. No. 1860 | ||
Substitute the following for H.B. No. 1860: | |||
By: Hilderbran | C.S.H.B. No. 1860 |
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relating to a deduction under the franchise tax for certain | ||
contracts with the federal government. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 171.101(a), Tax Code, is amended to read | ||
as follows: | ||
(a) The taxable margin of a taxable entity is computed by: | ||
(1) determining the taxable entity's margin, which is | ||
the lesser of: | ||
(A) 70 percent of the taxable entity's total | ||
revenue from its entire business, as determined under Section | ||
171.1011; or | ||
(B) an amount computed by: | ||
(i) determining the taxable entity's total | ||
revenue from its entire business, under Section 171.1011; | ||
(ii) subtracting, at the election of the | ||
taxable entity, either: | ||
(a) cost of goods sold, as determined | ||
under Section 171.1012; or | ||
(b) compensation, as determined under | ||
Section 171.1013; [ |
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(iii) subtracting 50 percent of the costs | ||
not already subtracted under Subparagraph (ii)(a) or (b) that are | ||
properly allocable under the Federal Acquisition Regulation (48 | ||
C.F.R. Chapter 1, or a successor regulation), to contracts, or | ||
subcontracts supporting those contracts, for the sale of goods or | ||
services to the federal government; and | ||
(iv) subtracting, in addition to any | ||
subtractions made under Subparagraph (ii)(a) or (b), compensation, | ||
as determined under Section 171.1013, paid to an individual during | ||
the period the individual is serving on active duty as a member of | ||
the armed forces of the United States if the individual is a | ||
resident of this state at the time the individual is ordered to | ||
active duty and the cost of training a replacement for the | ||
individual; | ||
(2) apportioning the taxable entity's margin to this | ||
state as provided by Section 171.106 to determine the taxable | ||
entity's apportioned margin; and | ||
(3) subtracting from the amount computed under | ||
Subdivision (2) any other allowable deductions to determine the | ||
taxable entity's taxable margin. | ||
SECTION 2. This Act applies only to a report originally due | ||
on or after January 1, 2014. | ||
SECTION 3. This Act takes effect January 1, 2014. |