Bill Text: TX HB2717 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to an insurer that establishes or significantly expands physical operations in this state; authorizing a premium tax credit.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-05-08 - Committee report sent to Calendars [HB2717 Detail]
Download: Texas-2013-HB2717-Introduced.html
| 83R10347 TJS-F | ||
| By: Eiland | H.B. No. 2717 | |
|
|
||
|
|
||
| relating to an insurer that establishes or significantly expands | ||
| physical operations in this state; authorizing a premium tax | ||
| credit. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle B, Title 3, Insurance Code, is amended | ||
| by adding Chapter 230 to read as follows: | ||
| CHAPTER 230. PREMIUM TAX CREDIT FOR ESTABLISHING OR EXPANDING | ||
| OPERATIONS IN THIS STATE | ||
| Sec. 230.001. TAX CREDIT. The commissioner, with the | ||
| concurrence of the comptroller, may award a premium tax credit to an | ||
| insurer or other person with premium tax liability under this code, | ||
| as provided by this chapter, on determination that: | ||
| (1) the insurer has established or significantly | ||
| expanded physical operations in this state; and | ||
| (2) the establishment or expansion of operations | ||
| described by Subdivision (1) has produced a significant economic | ||
| benefit to this state in the taxable year during which the | ||
| establishment or expansion occurred. | ||
| Sec. 230.002. APPLICABLE TAXES. The tax credit under this | ||
| chapter may be applied to premium tax liability under Chapter 221, | ||
| 222, 223, 224, or 225. | ||
| Sec. 230.003. APPLICATION. (a) To receive a premium tax | ||
| credit under this chapter, an insurer must, not earlier than the | ||
| 12th month before or later than the 12th month after the activity | ||
| that is the basis of the insurer's eligibility for the credit, | ||
| submit an application to the commissioner and to the comptroller | ||
| detailing the insurer's establishment or significant expansion of | ||
| physical operations in this state, or the insurer's plan to | ||
| establish or expand operations in this state, as applicable, that | ||
| includes information demonstrating that taxes, fees, and other | ||
| sources of revenue to the state associated with the establishment | ||
| or expansion will more than offset foregone premium tax revenue | ||
| under this chapter. The application must include information about | ||
| the new or expanded operations, including: | ||
| (1) the number of new employees hired in this state; | ||
| (2) the purchase price or leasing costs, as | ||
| applicable, of properties located in this state; | ||
| (3) the cost of improvements made to real property | ||
| used in the operation of the business in this state; | ||
| (4) the anticipated wages paid to residents; | ||
| (5) an estimate of all new tax revenues to be paid to | ||
| the state or a political subdivision; | ||
| (6) other economic benefits to the state directly | ||
| related to the new or expanded physical operations; and | ||
| (7) any other evidence to be considered in determining | ||
| whether to allow the premium tax credit. | ||
| (b) The commissioner may approve an application under this | ||
| section only by an order that contains findings related to the net | ||
| anticipated benefit to the state. The order may contain terms that | ||
| limit or modify the insurer's plan or that condition the allowance | ||
| of tax credits on certain subsequent events. | ||
| (c) An insurer that receives a premium tax credit under this | ||
| chapter must submit to the commissioner annual filings that provide | ||
| evidence of the insurer's compliance with any conditions provided | ||
| by the order allowing the credit. | ||
| Sec. 230.004. AMOUNT OF PREMIUM TAX CREDIT. (a) An insurer | ||
| may apply for a premium tax credit under this chapter in an amount | ||
| not to exceed 100 percent of an investment directly related to the | ||
| establishment or significant expansion of physical operations in | ||
| this state. | ||
| (b) The credit against state premium tax liability of an | ||
| insurer in any one year may not exceed the state premium tax | ||
| liability of the insurer for that taxable year. | ||
| Sec. 230.005. TIME PERIOD; LIMITS. (a) If the commissioner | ||
| finds that an insurer qualifies for a premium tax credit under this | ||
| chapter, the commissioner may issue an order granting the credit in | ||
| the amount allowed under Section 230.004 for the taxable year in | ||
| which the premium tax credit was granted. | ||
| (b) The commissioner may grant to an insurer the premium tax | ||
| credit allowed under this chapter for not more than eight taxable | ||
| years. | ||
| (c) Any unused premium tax credit granted for a taxable year | ||
| under this chapter may be carried forward by an insurer against | ||
| state premium tax liability for not more than seven years. | ||
| Sec. 230.006. RECAPTURE AND FORFEITURE OF TAX CREDIT. If | ||
| the commissioner determines that an insurer has failed to comply | ||
| with a condition of the order issued under Section 230.003, the | ||
| commissioner, after notice and an opportunity for hearing, shall | ||
| issue an order requiring: | ||
| (1) the recapture of the premium tax credits | ||
| previously claimed by the insurer; and | ||
| (2) the forfeiture by the insurer of future premium | ||
| tax credits under this chapter. | ||
| Sec. 230.007. RULES; FORMS. The commissioner shall adopt | ||
| rules and forms as necessary to implement this chapter. | ||
| SECTION 2. As soon as practicable after the effective date | ||
| of this Act, the commissioner of insurance shall adopt rules and | ||
| forms as required by Section 230.007, Insurance Code, as added by | ||
| this Act. | ||
| SECTION 3. This Act takes effect September 1, 2013. | ||
