SB653 - Relating to a refund of sales and use taxes paid on the purchase or use of building materials used to construct certain subsidized housing.

  89R2744 RDS-D     By: West S.B. No. 653       A BILL TO BE ENTITLED   AN ACT   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.