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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing enterprise project half designations and |
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quarter designations under the enterprise zone program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2303.401, Government Code, is amended by |
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adding Subdivisions (3), (4), and (5) to read as follows: |
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(3) "Full enterprise project" means an enterprise |
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project that is allocated more than 250 jobs for benefit. |
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(4) "Half enterprise project" means an enterprise |
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project that is allocated at least 126 jobs but not more than 250 |
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jobs for benefit and is considered to be one-half of a full |
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enterprise project designation for purposes of this subchapter. |
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(5) "Quarter enterprise project" means an enterprise |
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project that is allocated not more than 125 jobs for benefit and is |
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considered to be one-quarter of a full enterprise project |
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designation for purposes of this subchapter. |
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SECTION 2. Section 2303.403, Government Code, is amended to |
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read as follows: |
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Sec. 2303.403. PROHIBITION ON QUALIFIED BUSINESS |
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CERTIFICATION; LIMIT ON ENTERPRISE PROJECT DESIGNATIONS. (a) If |
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the bank determines that the governing body eligible to nominate an |
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enterprise project is not complying with this chapter, the bank |
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shall prohibit the certification of a qualified business until the |
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bank determines that the governing body is complying with this |
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chapter. |
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(b) The bank may not designate more than 105 enterprise |
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projects during any biennium. Any designations remaining at the |
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end of a biennium may be carried forward to the next biennium. |
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(c) For purposes of Subsection (b): |
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(1) a full enterprise project uses one of the bank's |
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designations; |
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(2) a half enterprise project uses one-half of one of |
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the bank's designations; and |
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(3) a quarter enterprise project uses one-quarter of |
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one of the bank's designations. |
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SECTION 3. Sections 2303.406(d) and (f), Government Code, |
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are amended to read as follows: |
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(d) The maximum number of enterprise projects that the bank |
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may designate for each nominating body during any biennium is: |
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(1) six full enterprise projects, if the nominating |
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body is the governing body of a municipality or county with a |
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population of less than 250,000; or |
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(2) nine full enterprise projects, if the nominating |
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body is the governing body of a municipality or county with a |
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population of 250,000 or more. |
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(f) An approved designation as a double jumbo enterprise |
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project, as defined by Section 2303.407, counts as two full |
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enterprise project designations against both the nominating body |
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for purposes of Subsection (d) and the number of enterprise project |
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designations allowed statewide per biennium under Section |
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2303.403. An approved designation as a triple jumbo enterprise |
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project, as defined by Section 2303.407, counts as three full |
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enterprise project designations against both the nominating body |
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for purposes of Subsection (d) and the number of enterprise project |
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designations allowed statewide per biennium under Section |
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2303.403. |
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SECTION 4. Section 2303.4071, Government Code, is amended |
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by adding Subsection (e) to read as follows: |
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(e) A double jumbo or triple jumbo enterprise project may be |
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split into four half designations or four quarter designations, and |
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the maximum tax refunds for the project divided accordingly. |
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SECTION 5. Section 2303.407, Government Code, is amended by |
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amending Subsection (b) and adding Subsection (e) to read as |
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follows: |
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(b) A capital investment in a project of: |
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(1) $40,000 to $399,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $25,000 for the creation |
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or retention of 10 jobs; |
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(2) $400,000 to $999,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $62,500 for the creation |
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or retention of 25 jobs; |
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(3) $1,000,000 to $4,999,999 will result in a refund |
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of up to $2,500 per job with a maximum refund of $312,500 for the |
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creation or retention of 125 jobs; |
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(4) $5,000,000 to $149,999,999 will result in a refund |
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of up to $2,500 per job with a maximum refund of: |
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(A) $625,000 for the creation or retention of 250 |
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jobs; or |
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(B) $1,250,000 for the creation or retention of |
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500 jobs; |
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(5) if the bank designates the project as a double |
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jumbo enterprise project, $150,000,000 to $249,999,999 will |
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result in a refund of up to $5,000 per job with a maximum refund of: |
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(A) $1,250,000 for the creation or retention of |
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250 jobs; or |
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(B) $2,500,000 for the creation or retention of |
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500 jobs [if the bank designates the project as a double jumbo
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enterprise project]; or |
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(6) if the bank designates the project as a triple |
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jumbo enterprise project, $250,000,000 or more will result in a |
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refund of up to $7,500 per job with a maximum refund of: |
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(A) $1,875,000 for the creation or retention of |
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at least 250 jobs; or |
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(B) $3,750,000 for the creation or retention of |
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at least 500 jobs [if the bank designates the project as a triple
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jumbo enterprise project]. |
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(e) The maximum tax refund for a half enterprise project or |
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a quarter enterprise project shall be reduced proportionally. |
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SECTION 6. Section 151.429, Tax Code, is amended by |
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amending Subsection (b) and adding Subsection (k) to read as |
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follows: |
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(b) Subject to the limitations provided by Subsection (c) of |
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this section, an enterprise project qualifies for a refund of taxes |
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under this section based on the amount of capital investment made at |
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the qualified business site, the project's designation level, and |
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the refund per job with a maximum refund to be included in a |
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computation of a tax refund for the project. A capital investment |
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at the qualified business site of: |
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(1) $40,000 to $399,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $25,000 for the creation |
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or retention of 10 jobs; |
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(2) $400,000 to $999,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $62,500 for the creation |
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or retention of 25 jobs; |
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(3) $1,000,000 to $4,999,999 will result in a refund |
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of up to $2,500 per job with a maximum refund of $312,500 for the |
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creation or retention of 125 jobs; |
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(4) $5,000,000 to $149,999,999 will result in a refund |
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of up to $2,500 per job with a maximum refund of: |
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(A) $625,000 for the creation or retention of 250 |
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jobs; or |
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(B) $1,250,000 for the creation or retention of |
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500 jobs; |
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(5) if the Texas Economic Development Bank designates |
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the project as a double jumbo enterprise project, $150,000,000 to |
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$249,999,999 will result in a refund of up to $5,000 per job with a |
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maximum refund of: |
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(A) $1,250,000 for the creation or retention of |
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250 jobs; or |
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(B) $2,500,000 for the creation or retention of |
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500 jobs [if the Texas Economic Development Bank designates the
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project as a double jumbo enterprise project]; or |
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(6) if the Texas Economic Development Bank designates |
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the project as a triple jumbo enterprise project, $250,000,000 or |
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more will result in a refund of up to $7,500 per job with a maximum |
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refund of: |
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(A) $1,875,000 for the creation or retention of |
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at least 250 jobs; or |
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(B) $3,750,000 for the creation or retention of |
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at least 500 jobs [if the Texas Economic Development Bank
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designates the project as a triple jumbo enterprise project]. |
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(k) The maximum tax refund for a half enterprise project or |
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a quarter enterprise project shall be reduced proportionally. In |
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this subsection, "half enterprise project" and "quarter enterprise |
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project" have the meanings assigned by Section 2303.401, Government |
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Code. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |