Bill Text: TX SB653 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to a refund of sales and use taxes paid on the purchase or use of building materials used to construct certain subsidized housing.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2025-02-03 - Referred to Finance [SB653 Detail]
Download: Texas-2025-SB653-Introduced.html
| 89R2744 RDS-D | ||
| By: West | S.B. No. 653 | |
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| relating to a refund of sales and use taxes paid on the purchase or | ||
| use of building materials used to construct certain subsidized | ||
| housing. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended | ||
| by adding Section 151.4293 to read as follows: | ||
| Sec. 151.4293. REFUND FOR BUILDING MATERIALS USED IN | ||
| CERTAIN AFFORDABLE HOUSING PROJECTS. (a) In this section, | ||
| "qualifying affordable housing" means housing: | ||
| (1) that is located in this state; | ||
| (2) the construction of which is subsidized by a | ||
| federal or state tax credit issued for the purpose of constructing | ||
| affordable housing; and | ||
| (3) for which the state or federal tax credit | ||
| described by Subdivision (2) is awarded on or after September 1, | ||
| 2025. | ||
| (b) A person is entitled to a refund in the amount and under | ||
| the conditions provided by this section of the taxes paid under this | ||
| chapter on the purchase or use of building materials used to | ||
| construct qualifying affordable housing. | ||
| (c) Subject to Subsections (d) and (e), the amount of the | ||
| refund to which a person is entitled under this section is equal to | ||
| the sum of: | ||
| (1) for each single-family home that is qualifying | ||
| affordable housing that the person constructs, the amount of the | ||
| taxes paid under this chapter on not more than $50,000 of building | ||
| materials purchased for the construction of the home during the | ||
| 180-day period preceding the date the person files an application | ||
| for the refund under Subsection (f); and | ||
| (2) for each residential unit constructed by the | ||
| person in an apartment complex that is qualifying affordable | ||
| housing, the amount of the taxes paid under this chapter on not more | ||
| than $5,000 of building materials purchased for the construction of | ||
| the unit during the 180-day period preceding the date the person | ||
| files an application for the refund under Subsection (f). | ||
| (d) A person may not claim more than: | ||
| (1) $100,000 in refunds under Subsection (c)(1) in a | ||
| calendar year; and | ||
| (2) $100,000 in refunds under Subsection (c)(2) in a | ||
| 180-day period. | ||
| (e) The total amount of refunds that may be awarded under | ||
| this section to all applicants in a state fiscal year may not exceed | ||
| $2 million. The refunds shall be allocated on a first-come, | ||
| first-served basis, based on the date each application is submitted | ||
| under Subsection (f). | ||
| (f) A person must apply to the comptroller in the manner | ||
| prescribed by the comptroller to receive a refund under this | ||
| section. A person may not again submit an application for a refund | ||
| before the 180th day after the date the person last submitted an | ||
| application for a refund under this section. | ||
| (g) The comptroller shall adopt rules necessary to | ||
| implement and administer this section. | ||
| SECTION 2. The change in law made by this Act does not | ||
| affect tax liability accruing before the effective date of this | ||
| Act. That liability continues in effect as if this Act had not been | ||
| enacted, and the former law is continued in effect for the | ||
| collection of taxes due and civil and criminal enforcement of the | ||
| liability for those taxes. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
