Bill Text: TX SB2152 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the transfer of certain unused franchise tax credits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-29 - Referred to Finance [SB2152 Detail]
Download: Texas-2017-SB2152-Introduced.html
85R3033 CBH-F | ||
By: Huffman | S.B. No. 2152 |
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relating to the transfer of certain unused franchise tax credits. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 18, Chapter 1 (H.B. 3), Acts of the 79th | ||
Legislature, 3rd Called Session, 2006, is amended by adding | ||
Subsections (h), (i), (j), (j-1), and (k) to read as follows: | ||
(h) In this subsection and Subsection (i) of this section, | ||
"transfer" includes a sale. Notwithstanding Subsections (e) and (f) | ||
of this section, a corporation that had unused credits before | ||
January 1, 2008, under former Subchapter P or Q, Chapter 171, Tax | ||
Code, that expired under the terms of one of those former | ||
subchapters or under Subsection (e) or (f) of this section, may | ||
transfer the right to all or part of the expired credits to another | ||
taxpayer of this state. The taxpayer to whom a credit is transferred | ||
may apply the credit only as provided by Subsections (j) and (j-1) | ||
of this section. To be eligible to transfer all or part of the | ||
credits, the corporation must obtain a certificate of transfer of | ||
credit from the comptroller for the amount of the credits to be | ||
transferred. Not later than the 30th day after the date of the | ||
transfer, the corporation must submit to the comptroller a notice | ||
of the transfer in a form prescribed by the comptroller. The notice | ||
must be accompanied by a copy of the certificate of transfer issued | ||
by the comptroller and specify: | ||
(1) the number on the certificate of transfer; | ||
(2) the amount of the corporation's unused credits | ||
preceding the transfer; | ||
(3) the date of the transfer; | ||
(4) the total amount of credits transferred; | ||
(5) the tax identification numbers of the corporation | ||
and the taxpayer to which the credit was transferred; | ||
(6) the corporation's remaining amount of unused | ||
credits after the transfer; and | ||
(7) any other information the comptroller requires. | ||
(i) The transfer of a credit under Subsection (h) of this | ||
section is limited to an unused credit for which the corporation was | ||
eligible before January 1, 2008, and does not include credits | ||
authorized under former Subchapter Q-1, Chapter 171, Tax Code, or | ||
credits that were created under the terms of a written agreement | ||
between a taxpayer and the Texas Department of Economic Development | ||
or its successor that was entered into before June 1, 2006, and that | ||
continue to accrue under the terms provided by Section 19 of this | ||
Act. Subject to Subsection (j-1) of this section, the transferee of | ||
a credit under this section obtains the credit subject to the same | ||
rights and privileges as the transferor had on the date the credit | ||
was originally established. If a corporation transfers a credit | ||
that the corporation was not entitled to transfer at the time of the | ||
transfer: | ||
(1) the taxpayer to which the credit was transferred | ||
may pursue any remedy authorized by law against the corporation and | ||
may not pursue any remedy against the comptroller or this state; and | ||
(2) the comptroller or Texas Workforce Commission, as | ||
appropriate: | ||
(A) may not allow the taxpayer to which the | ||
credit was transferred to apply the credit on a report for a tax or | ||
contribution listed in Subsection (j) of this section; or | ||
(B) shall recover from the taxpayer the amount of | ||
the credit the taxpayer claims on a report using any means | ||
authorized by law. | ||
(j) Subject to Subsection (j-1) of this section, a taxpayer | ||
to which a credit is transferred under Subsection (h) of this | ||
section may apply the credit against: | ||
(1) the taxes due under Chapters 151, 152, 154, 155, | ||
156, 158, 160, 162, 171, 181, 182, 183, 191, 201, and 202, Tax Code; | ||
(2) the occupation taxes due under Title 3, Insurance | ||
Code; and | ||
(3) a contribution due under Subtitle A, Title 4, | ||
Labor Code. | ||
(j-1) A taxpayer to which a credit is transferred under | ||
Subsection (h) of this section may apply the credit only: | ||
(1) on or with a franchise tax report covering a period | ||
for which the transferring corporation would have been entitled to | ||
apply the transferred credit under Subsection (e) or (f) of this | ||
section, as appropriate, in the absence of a limitation on the | ||
amount of the credit for that period; and | ||
(2) in relation to occupation taxes imposed under | ||
Title 3, Insurance Code, or other taxes and contributions paid to | ||
this state, during a period for which the transferring corporation | ||
would have been entitled to apply the transferred credit under | ||
Subsection (e) or (f) of this section, as appropriate, in the | ||
absence of a limitation on the amount of the credit for that period. | ||
(k) A taxpayer to which an unused tax credit is transferred | ||
under Subsection (h) of this section may not apply the credit after | ||
August 31, 2019. | ||
SECTION 2. 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, 2017. |