SB1231 - Relating to a franchise tax credit for taxable entities that purchase certain theft deterrent and property loss prevention equipment.

  89R4902 JBD-D     By: Creighton S.B. No. 1231       A BILL TO BE ENTITLED   AN ACT   relating to a franchise tax credit for taxable entities that   purchase certain theft deterrent and property loss prevention   equipment.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 171, Tax Code, is amended by adding   Subchapter N to read as follows:   SUBCHAPTER N. TAX CREDIT FOR PURCHASE OF THEFT DETERRENT AND   PROPERTY LOSS PREVENTION EQUIPMENT           Sec.   171.701.     ENTITLEMENT TO CREDIT. A taxable entity is   entitled to a credit in the amount and under the conditions provided   by this subchapter against the tax imposed under this chapter.           Sec.   171.702.     QUALIFICATION. A taxable entity qualifies   for a credit under this subchapter if the taxable entity purchases   one or more items of theft deterrent or property loss prevention   equipment included on the list of eligible equipment adopted under   Section 171.707.           Sec.   171.703.     AMOUNT OF CREDIT; LIMITATION. (a) Subject to   Subsection (b), the amount of the credit for a report is equal to   the total amount of costs and expenses incurred by a taxable entity   to purchase items described by Section 171.702 during the period on   which the report is based, including the purchase price of those   items.           (b)     The total credit claimed on a report, including the   amount of any carryforward under Section 171.704, may not exceed   the amount of franchise tax due for the report after applying all   other applicable credits.           Sec.   171.704.     CARRYFORWARD. (a) A taxable entity that is   eligible for a credit that exceeds the limitation under Section   171.703(b) may carry the unused credit forward for not more than   five 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 171.703(b).           (c)     Credits, including a carryforward, are considered to be   used in the following order:                 (1)  a carryforward under this subchapter; and                 (2)  a current year credit.           Sec.   171.705.     APPLICATION FOR CREDIT. (a) A taxable entity   must apply for a credit under this subchapter on or with the report   for the period for which the credit is claimed.           (b)     The comptroller shall prescribe the form and method a   taxable entity must use to apply for the credit.           (c)     The comptroller may require a taxable entity to submit   with an application any information needed to determine whether the   taxable entity qualifies for the credit or the amount of the credit.           Sec.   171.706.     ASSIGNMENT PROHIBITED; EXEMPTION. A taxable   entity may not convey, assign, or transfer the credit allowed under   this subchapter to another taxable entity unless substantially all   of the assets of the taxable entity are conveyed, assigned, or   transferred in the same transaction.           Sec.   171.707.     RULES. The comptroller shall adopt rules   necessary to implement and administer this subchapter, including a   list of equipment useful or necessary to deter theft or prevent   property loss that is eligible for the credit.          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, 2026.