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.

Spectrum: Partisan Bill (Democrat 1-0)

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
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.
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