H.B. No. 1058

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()
Enrolled: ()

	AN ACT
	relating to a franchise or insurance premium tax credit for certain
	housing developments.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 171, Tax Code, is amended by adding
	Subchapter K to read as follows:
	SUBCHAPTER K. TAX CREDIT FOR CERTAIN HOUSING DEVELOPMENTS
	Sec. 171.551.  DEFINITIONS. In this subchapter:
	(1)  "Allocation certificate" means a statement issued
	by the department certifying that a qualified development qualifies
	for credits under this subchapter and Chapter 233, Insurance Code,
	specifying the total amount of the credits awarded in connection
	with the qualified development for the credit period, and
	specifying the amount of credit that may be claimed each year for
	each building that is part of the qualified development.
	(2)  "Credit" means the low-income housing development
	tax credit authorized by this subchapter.
	(3)  "Credit period" means, with respect to a building
	that is part of a qualified development, the period of 10 tax years
	beginning with the tax year in which the building is placed in
	service.
	(4)  "Department" means the Texas Department of Housing
	and Community Affairs.
	(5)  "Development" has the meaning assigned by Section
	2306.6702, Government Code.
	(6)  "Federal tax credit" means the federal low-income
	housing credit created by Section 42, Internal Revenue Code.
	(7)  "Qualified basis" means the qualified basis of a
	qualified development, as determined under Section 42, Internal
	Revenue Code.
	(8)  "Qualified development" means a development in
	this state:
	(A)  for which the department awards or allocates
	a federal tax credit through the issuance of a carryover allocation
	agreement or determination notice;
	(B)  that has not had an allocation of federal tax
	credits terminated by or at the direction of the department;
	(C)  that is the subject of a recorded restrictive
	covenant requiring the development to be maintained and operated as
	a qualified development that has not been terminated and is not
	subject to termination through any process other than the natural
	expiration of the covenant's extended use period;
	(D)  that meets all applicable requirements of the
	qualified allocation plan, as defined by Section 2306.6702,
	Government Code; and
	(E)  for the duration of the extended use period
	established in the land use restriction agreement, as defined by
	Section 2306.6702(a)(9), Government Code, is in compliance with:
	(i)  all accessibility and adaptability
	requirements for a federal tax credit; and
	(ii)  Title VIII of the Civil Rights Act of
	1968 (42 U.S.C. Section 3601 et seq.).
	(9)  "State housing credit ceiling" means $25 million
	of credits each award year.
	Sec. 171.552.  ENTITLEMENT TO CREDIT. A taxable entity is
	entitled to a credit against the taxes imposed under this chapter in
	the amount and under the limitations provided by this subchapter if
	the taxable entity owns a direct or indirect interest in a qualified
	development.
	Sec. 171.553.  APPLICATION FOR AND ISSUANCE OF ALLOCATION
	CERTIFICATE. (a) A taxable entity or an entity subject to state
	premium tax liability as defined by Section 233.0001, Insurance
	Code, must apply to the department for an allocation certificate in
	connection with a development in which the taxable entity or other
	entity owns an interest.  The application must be submitted to the
	department along with the application for an allocation of federal
	tax credits in a manner prescribed by the department.
	(b)  The department shall issue an allocation certificate
	if:
	(1)  the department approves the application submitted