Bill Text: TX HB3386 | 2013-2014 | 83rd Legislature | Introduced

Texas House Bill 3386 (Prior Session Legislation)

Introduced

Bill Title: Relating to the transferability of certain unused credits under the Texas Franchise Tax.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2013-04-02 - Left pending in committee [HB3386 Detail]

Download: Texas-2013-HB3386-Introduced.html



	By: Hilderbran	H.B. No. 3386



	A BILL TO BE ENTITLED
	AN ACT
	relating to the transferability of certain unused credits under the
	Texas Franchise Tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subsection (e) and (f), Section 18, Chapter 1
	(H.B. 3) Acts of the 79th Legislature, 3rd Called Session, 2006, are
	amended to read as follows:
	(e) A corporation that has any unused credits established
	before the effective date of this Act under Subchapter P, Chapter
	171, Tax Code, may claim those unused credits on or with the tax
	report for the period in which the credit was established. However,
	if the corporation was allowed to carry forward unused credits
	under that subchapter, the corporation may continue to apply those
	credits on or with each consecutive report until the earlier of the
	date the credit would have expired under the terms of Subchapter P,
	Chapter 171, Tax Code, had it continued in existence, or December
	31, 2016, and the former law under which the corporation
	established the credits is continued in effect for purposes of
	determining the amount of the credits the corporation may claim and
	the manner in which the corporation may claim the credit[.],
	provided, however, that the corporation also may transfer the
	unused credits by requesting a certificate of transferability of
	credit from the Comptroller's Office for the unexpired amount of
	credit not previously claimed. A transferability certificate so
	issued may be transferred or sold by the recipient to another Texas
	taxpayer. Transferors and sellers shall submit to the Comptroller's
	Office a notification of any transfer or sale of tax credits within
	30 days after the transfer or sale of those tax credits. The
	notification, which shall be in the form prescribed by the
	Comptroller's Office, shall include the transferor's tax credit
	balance prior to transfer, the credit certificate number, the
	transferor's remaining tax credit balance after transfer, all tax
	identification numbers for both transferor and transferee, the date
	of transfer, the amount transferred, a copy of the credit
	certificate, and any other information required by the
	Comptroller's Office. The transfer or sale of the credit does not
	extend the time in which the credit can be used. The carry forward
	period for a credit that is transferred or sold begins on the date
	on which the credit was originally granted by the Comptroller's
	Office. To the extent the transferor did not have rights to claim or
	use the credit at the time of the transfer or sale, the
	Comptroller's Office shall either disallow the credit claimed by
	the transferee or recapture the credit from the transferee through
	any collection method authorized by statute. In such case, the
	transferee's recourse is against the transferor.
	(f) A corporation that has any unused credits established
	before the effective date of this Act under Subchapter Q, Chapter
	171, Tax Code, may claim those unused credits on or with the tax
	report for the period in which the credit was established. However,
	if the corporation was allowed to carry forward unused credits
	under that subchapter, the corporation may continue to apply those
	credits on or with each consecutive report until the earlier of the
	date the credit would have expired under the terms of Subchapter P,
	Chapter 171, Tax Code, had it continued in existence, or December
	31, 2016, and the former law under which the corporation
	established the credits is continued in effect for purposes of
	determining the amount of the credits the corporation may claim and
	the manner in which the corporation may claim the credit[.],
	provided, however, that the corporation also may transfer the
	unused credits by requesting a certificate of transferability of
	credit from the Comptroller's Office for the unexpired amount of
	credit not previously claimed. A transferability certificate so
	issued may be transferred or sold by the recipient to another Texas
	taxpayer. Transferors and sellers shall submit to the Comptroller's
	Office a notification of any transfer or sale of tax credits within
	30 days after the transfer or sale of those tax credits. The
	notification, which shall be in the form prescribed by the
	Comptroller's Office, shall include the transferor's tax credit
	balance prior to transfer, the credit certificate number, the
	transferor's remaining tax credit balance after transfer, all tax
	identification numbers for both transferor and transferee, the date
	of transfer, the amount transferred, a copy of the credit
	certificate, and any other information required by the
	Comptroller's Office. The transfer or sale of the credit does not
	extend the time in which the credit can be used. The carry forward
	period for a credit that is transferred or sold begins on the date
	on which the credit was originally granted by the Comptroller's
	Office. To the extent the transferor did not have rights to claim or
	use the credit at the time of the transfer or sale, the
	Comptroller's Office shall either disallow the credit claimed by
	the transferee or recapture the credit from the transferee through
	any collection method authorized by statute. In such case, the
	transferee's recourse is against the transferor.

	SECTION 2. This Act shall take effect on January 1, 2014.