Bill Text: TX HB2037 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for research and development of energy storage technologies.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2021-03-15 - Referred to Ways & Means [HB2037 Detail]
Download: Texas-2021-HB2037-Introduced.html
By: Herrero | H.B. No. 2037 |
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relating to a franchise tax credit for research and development of | ||
energy storage technologies. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter V to read as follows: | ||
SUBCHAPTER V. TAX CREDIT FOR RESEARCH AND DEVELOPMENT OF ENERGY | ||
STORAGE TECHNOLOGY | ||
Sec. 171.901. DEFINITIONS. In this subchapter: | ||
(1) "Base amount" and "qualified research expenses" | ||
have the meanings assigned by Section 41, Internal Revenue Code, | ||
except that all payments and expenses must be for research | ||
conducted in this state that relates to the development of energy | ||
storage technologies. | ||
(2) "Energy storage technology" means a technology for | ||
storing generated electricity for later transmission and | ||
distribution. | ||
Sec. 171.902. ENTITLEMENT TO CREDIT. A taxable entity is | ||
entitled to a credit in the amount and under the conditions and | ||
limitations provided by this subchapter against the tax imposed | ||
under this chapter. | ||
Sec. 171.903. AMOUNT; LIMITATIONS. (a) The credit for a | ||
report is equal to the sum of the excess of qualified research | ||
expenses incurred in this state during the accounting period on | ||
which the tax is based over the base amount for that research. | ||
(b) For the purposes of this section, "gross receipts" as | ||
used in Section 41, Internal Revenue Code, means gross receipts as | ||
determined under Section 171.103. | ||
(c) The total credit claimed under this subchapter for a | ||
report may not exceed the amount of franchise tax due after any | ||
other applicable credits. | ||
Sec. 171.904. CARRYFORWARD. (a) If a taxable entity is | ||
eligible for a credit that exceeds the limitation under Section | ||
171.903(c), the taxable entity may carry the unused credit forward | ||
for not more than 20 consecutive reports. | ||
(b) A carryforward is considered the remaining portion of a | ||
credit that cannot be claimed in the current year because of the | ||
limitation under Section 171.903(c). A carryforward is added to the | ||
next year's credit in determining whether the limitation is met for | ||
that year. A credit carryforward from a previous report is | ||
considered to be used before the current year credit. | ||
Sec. 171.905. ASSIGNMENT PROHIBITED. A taxable entity may | ||
not convey, assign, or transfer the credit allowed under this | ||
subchapter to another entity unless all of the assets of the taxable | ||
entity are conveyed, assigned, or transferred. | ||
Sec. 171.906. RULES. The comptroller shall adopt rules | ||
necessary to implement this subchapter. | ||
SECTION 2. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2022. |