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Relating to a franchise or insurance tax credit for certain housing developments.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3907, As Introduced: a negative impact of ($9,703,000) 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 ($6,294,000) for the 202223 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.
Annual reductions in net tax revenue would continue to escalate as additional annual credit award cohorts
cumulate; by 2032 estimated total state tax revenue reductions would exceed $188 million.
HB 3907 would create a new tax credit for a taxable entity if they own interest in certain qualified developments and would allow for carry-forward or backward and recapture of this tax credit.