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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise or insurance premium tax credit for certain |
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housing developments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter K to read as follows: |
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SUBCHAPTER K. TAX CREDIT FOR CERTAIN HOUSING DEVELOPMENTS |
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Sec. 171.551. DEFINITIONS. In this subchapter: |
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(1) "Allocation certificate" means a statement issued |
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by the department certifying that a qualified development qualifies |
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for credits under this subchapter and Chapter 233, Insurance Code, |
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and specifying the total amount of the credits awarded in |
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connection with the qualified development for the credit period. |
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(2) "Credit" means the low-income housing development |
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tax credit authorized by this subchapter. |
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(3) "Credit period" means, with respect to a building |
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that is part of a qualified development, the period of 10 tax years |
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beginning with the tax year in which the building is placed in |
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service. |
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(4) "Department" means the Texas Department of Housing |
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and Community Affairs. |
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(5) "Development" has the meaning assigned by Section |
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2306.6702, Government Code. |
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(6) "Federal tax credit" means the federal low-income |
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housing credit created by Section 42, Internal Revenue Code. |
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(7) "Qualified basis" means the qualified basis of a |
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qualified development, as determined under Section 42, Internal |
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Revenue Code. |
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(8) "Qualified development" means a development in |
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this state that the department determines is eligible for a federal |
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tax credit and that: |
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(A) is the subject of a recorded restrictive |
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covenant requiring the development to be maintained and operated as |
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a qualified development; and |
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(B) for the lesser of 15 years after the |
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beginning of the credit period or the period required by the |
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department, is in compliance with: |
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(i) all accessibility and adaptability |
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requirements for a federal tax credit; and |
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(ii) Title VIII of the Civil Rights Act of |
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1968 (42 U.S.C. Section 3601 et seq.). |
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(9) "State housing credit ceiling" means $25 million |
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each year. |
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Sec. 171.552. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit against the taxes imposed under this chapter in |
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the amount and under the limitations provided by this subchapter if |
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the taxable entity owns a direct or indirect interest in a qualified |
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development. |
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Sec. 171.553. ALLOCATION CERTIFICATE. (a) In a year during |
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a credit period, a taxable entity or an entity subject to state |
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premium tax liability as defined by Section 233.0001, Insurance |
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Code, may apply to the department for an allocation certificate in |
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connection with a development in which the taxable entity or other |
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entity owns an interest. |
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(b) The department shall issue an allocation certificate if |
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the development is a qualified development. |
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Sec. 171.554. AMOUNT OF CREDITS. (a) The department shall |
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in the manner provided by this section determine the total amount of |
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credits under this subchapter and Chapter 233, Insurance Code, |
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awarded for the credit period in connection with a qualified |
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development and indicate the amount of credits awarded on the |
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allocation certificate. |
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(b) The amount of credits awarded in connection with a |
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qualified development over the credit period must be the minimum |
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amount necessary for the financial feasibility of the qualified |
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development after considering any federal tax credit, subject to |
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the limitations of this section. |
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(c) The amount of credits awarded in connection with a |
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qualified development over the credit period may not exceed the |
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total federal tax credit awarded to the owner or owners of the |
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qualified development over the 10-year federal tax credit Statutes affected:
Introduced: ()
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