West Bill Refunds Builders’ Sales Tax On Subsidized Housing Materials

The text as introduced · 536 words

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.