Bill: HB 1195, 87(R) - 2021

Committee

House Ways & Means

Vote Recommendation

Vote Recommendation	Economic Freedom	Property Rights	Personal Responsibility	Limited Government	Individual Liberty
Yes	Neutral	Neutral	Neutral	Positive	Neutral

Author(s)

Charlie Geren

Greg Bonnen

John Frullo

Craig Goldman

Morgan Meyer

Co-Author(s)

DeWayne Burns

Angie Chen Button

Briscoe Cain

David Cook

Jake Ellzey

Barbara Gervin-Hawkins

Dan Huberty

Jacey Jetton

Ann Johnson

Stan Lambert

Ben Leman

Will Metcalf

Christina Morales

Dennis Paul

David Spiller

Bill Caption

Relating to the franchise tax treatment of certain loans and grants made under the federal Coronavirus Aid, Relief, and Economic Security Act.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB1195, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2023.

Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($211,500,000) through the end of the 2022-23 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

Bill Analysis

HB 1195 would amend the Tax Code to stipulate that loans or grants received through the federal Paycheck Protection Program and used for qualifying purposes do not count as revenue for the purpose of determining franchise tax liability.

Vote Recommendation Notes

Taking into account the fact that employers only needed to participate in the Paycheck Protection Program due to government mandated shutdowns in the first place, it is the right thing for the state to prevent these employers from being penalized by taxes for their participation in the program. Circumventing punitive taxation is consistent with limited government, therefore we support HB 1195.

Source URL (retrieved on 04/16/2024 02:04 PM): http://reports.texasaction.com/bill/87r/hb1195?print_view=true