Bill Text: TX HB2493 | 2011-2012 | 82nd Legislature | Engrossed

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Bill Title: Relating to authorizing enterprise project half designations and quarter designations under the enterprise zone program.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2011-05-16 - Referred to Economic Development [HB2493 Detail]

Download: Texas-2011-HB2493-Engrossed.html

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By: Torres, et al. H.B. No. 2493

A BILL TO BE ENTITLED
AN ACT
relating to authorizing enterprise project half designations and
quarter designations under the enterprise zone program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2303.401, Government Code, is amended by
adding Subdivisions (3), (4), and (5) to read as follows:
(3) "Full enterprise project" means an enterprise
project that is allocated more than 250 jobs for benefit.
(4) "Half enterprise project" means an enterprise
project that is allocated at least 126 jobs but not more than 250
jobs for benefit and is considered to be one-half of a full
enterprise project designation for purposes of this subchapter.
(5) "Quarter enterprise project" means an enterprise
project that is allocated not more than 125 jobs for benefit and is
considered to be one-quarter of a full enterprise project
designation for purposes of this subchapter.
SECTION 2. Section 2303.403, Government Code, is amended to
read as follows:
Sec. 2303.403. PROHIBITION ON QUALIFIED BUSINESS
CERTIFICATION; LIMIT ON ENTERPRISE PROJECT DESIGNATIONS. (a) If
the bank determines that the governing body eligible to nominate an
enterprise project is not complying with this chapter, the bank
shall prohibit the certification of a qualified business until the
bank determines that the governing body is complying with this
chapter.
(b) The bank may not designate more than 105 enterprise
projects during any biennium. Any designations remaining at the
end of a biennium may be carried forward to the next biennium.
(c) For purposes of Subsection (b):
(1) a full enterprise project uses one of the bank's
designations;
(2) a half enterprise project uses one-half of one of
the bank's designations; and
(3) a quarter enterprise project uses one-quarter of
one of the bank's designations.
SECTION 3. Sections 2303.406(d) and (f), Government Code,
are amended to read as follows:
(d) The maximum number of enterprise projects that the bank
may designate for each nominating body during any biennium is:
(1) six full enterprise projects, if the nominating
body is the governing body of a municipality or county with a
population of less than 250,000; or
(2) nine full enterprise projects, if the nominating
body is the governing body of a municipality or county with a
population of 250,000 or more.
(f) An approved designation as a double jumbo enterprise
project, as defined by Section 2303.407, counts as two full
enterprise project designations against both the nominating body
for purposes of Subsection (d) and the number of enterprise project
designations allowed statewide per biennium under Section
2303.403. An approved designation as a triple jumbo enterprise
project, as defined by Section 2303.407, counts as three full
enterprise project designations against both the nominating body
for purposes of Subsection (d) and the number of enterprise project
designations allowed statewide per biennium under Section
2303.403.
SECTION 4. Section 2303.4071, Government Code, is amended
by adding Subsection (e) to read as follows:
(e) A double jumbo or triple jumbo enterprise project may be
split into four half designations or four quarter designations, and
the maximum tax refunds for the project divided accordingly.
SECTION 5. Section 2303.407, Government Code, is amended by
amending Subsection (b) and adding Subsection (e) to read as
follows:
(b) A capital investment in a project of:
(1) $40,000 to $399,999 will result in a refund of up
to $2,500 per job with a maximum refund of $25,000 for the creation
or retention of 10 jobs;
(2) $400,000 to $999,999 will result in a refund of up
to $2,500 per job with a maximum refund of $62,500 for the creation
or retention of 25 jobs;
(3) $1,000,000 to $4,999,999 will result in a refund
of up to $2,500 per job with a maximum refund of $312,500 for the
creation or retention of 125 jobs;
(4) $5,000,000 to $149,999,999 will result in a refund
of up to $2,500 per job with a maximum refund of:
(A) $625,000 for the creation or retention of 250
jobs; or
(B) $1,250,000 for the creation or retention of
500 jobs;
(5) if the bank designates the project as a double
jumbo enterprise project, $150,000,000 to $249,999,999 will
result in a refund of up to $5,000 per job with a maximum refund of:
(A) $1,250,000 for the creation or retention of
250 jobs; or
(B) $2,500,000 for the creation or retention of
500 jobs [if the bank designates the project as a double jumbo
enterprise project]; or
(6) if the bank designates the project as a triple
jumbo enterprise project, $250,000,000 or more will result in a
refund of up to $7,500 per job with a maximum refund of:
(A) $1,875,000 for the creation or retention of
at least 250 jobs; or
(B) $3,750,000 for the creation or retention of
at least 500 jobs [if the bank designates the project as a triple
jumbo enterprise project].
(e) The maximum tax refund for a half enterprise project or
a quarter enterprise project shall be reduced proportionally.
SECTION 6. Section 151.429, Tax Code, is amended by
amending Subsection (b) and adding Subsection (k) to read as
follows:
(b) Subject to the limitations provided by Subsection (c) of
this section, an enterprise project qualifies for a refund of taxes
under this section based on the amount of capital investment made at
the qualified business site, the project's designation level, and
the refund per job with a maximum refund to be included in a
computation of a tax refund for the project. A capital investment
at the qualified business site of:
(1) $40,000 to $399,999 will result in a refund of up
to $2,500 per job with a maximum refund of $25,000 for the creation
or retention of 10 jobs;
(2) $400,000 to $999,999 will result in a refund of up
to $2,500 per job with a maximum refund of $62,500 for the creation
or retention of 25 jobs;
(3) $1,000,000 to $4,999,999 will result in a refund
of up to $2,500 per job with a maximum refund of $312,500 for the
creation or retention of 125 jobs;
(4) $5,000,000 to $149,999,999 will result in a refund
of up to $2,500 per job with a maximum refund of:
(A) $625,000 for the creation or retention of 250
jobs; or
(B) $1,250,000 for the creation or retention of
500 jobs;
(5) if the Texas Economic Development Bank designates
the project as a double jumbo enterprise project, $150,000,000 to
$249,999,999 will result in a refund of up to $5,000 per job with a
maximum refund of:
(A) $1,250,000 for the creation or retention of
250 jobs; or
(B) $2,500,000 for the creation or retention of
500 jobs [if the Texas Economic Development Bank designates the
project as a double jumbo enterprise project]; or
(6) if the Texas Economic Development Bank designates
the project as a triple jumbo enterprise project, $250,000,000 or
more will result in a refund of up to $7,500 per job with a maximum
refund of:
(A) $1,875,000 for the creation or retention of
at least 250 jobs; or
(B) $3,750,000 for the creation or retention of
at least 500 jobs [if the Texas Economic Development Bank
designates the project as a triple jumbo enterprise project].
(k) The maximum tax refund for a half enterprise project or
a quarter enterprise project shall be reduced proportionally. In
this subsection, "half enterprise project" and "quarter enterprise
project" have the meanings assigned by Section 2303.401, Government
Code.
SECTION 7. 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, 2011.