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Chapter 171

Franchise Tax

Subchapter A. Definitions; Tax Imposed

171.0001 General Definitions 171.0002 Definition of Taxable Entity 171.0003 Definition of Passive Entity 171.0004 Definition of Conducting Active Trade or Business 171.0005 Definition of New Veteran-Owned Business 171.001 Tax Imposed 171.0011 Additional Tax 171.002 Rates; Computation of Tax 171.003 Increase in Rate Requires Voter Approval 171.006 Adjustment of Eligibility for No Tax Due, Discounts, and Compensation Deduction

Subchapter B. Exemptions

171.051 Application for Exemption; Effective Date 171.052 Certain Corporations 171.0525 Exemption--Certain Insurance Companies 171.053 Exemption--Railway Terminal Corporation 171.055 Exemption--Open-End Investment Company 171.056 Exemption--Corporation with Business Interest in Solar Energy Devices 171.057 Exemption--Nonprofit Corporation Organized to Promote County, City, or Another Area 171.058 Exemption--Nonprofit Corporation Organized for Religious Purposes 171.059 Exemption--Nonprofit Corporation Organized to Provide Burial Places 171.060 Exemption--Nonprofit Corporation Organized for Agricultural Purposes 171.061 Exemption--Nonprofit Corporation Organized for Educational Purposes 171.062 Exemption--Nonprofit Corporation Organized for Public Charity 171.063 Exemption-Nonprofit Corporation Exempt from Federal Income Tax 171.064 Exemption--Nonprofit Corporation Organized for Conservation Purposes 171.065 Exemption--Nonprofit Corporation Organized to Provide Water Supply or Sewer Services 171.066 Exemption--Nonprofit Corporation Involved with City Natural Gas Facility 171.067 Exemption--Nonprofit Corporation Organized to Provide Convalescent Homes for Elderly 171.068 Exemption--Nonprofit Corporation Organized to Provide Cooperative Housing 171.069 Exemption--Marketing Associations 171.070 Exemption--Lodges 171.071 Exemption--Farmers' Cooperative Society 171.072 Exemption--Housing Finance Corporation 171.073 Exemption--Hospital Laundry Cooperative Association 171.074 Exemption--Development Corporation 171.075 Exemption--Cooperative Association 171.076 Exemption--Cooperative Credit Association 171.077 Exemption--Credit Union 171.079 Exemption--Electric Cooperative Corporation 171.080 Exemption--Telephone Cooperative Corporations 171.081 Exemption--Corporation Exempt by Another Law 171.082 Exemption--Certain Homeowners' Associations 171.083 Exemption--Emergency Medical Service Corporation 171.084 Exemption--Certain Trade Show Participants 171.085 Exemption; Recycling Operation 171.086 Exemption: Political Subdivision Corporation 171.087 Exemption--Nonprofit Corporation Organized for Student Loan Funds or Student Scholarship Purposes 171.088 Exemption--Noncorporate Entity Eligible for Certain Exemptions

Subchapter C. Determination of Taxable Margin; Allocation and Apportionment

171.101 Determination of Taxable Margin 171.1011 Determination of Total Revenue from Entire Business 171.1012 Determination of Cost of Goods Sold 171.1013 Determination of Compensation 171.10131 Provisions Related to Certain Money Received for Covid-19 Relief 171.10132 Provisions Related to Certain Grants Received for Broadband Deployment in Texas 171.1014 Combined Reporting; Affiliated Group Engaged in Unitary Business 171.1015 Reporting for Certain Partnerships in Tiered Partnership Arrangement 171.1016 E-Z Computation and Rate 171.103 Determination of Gross Receipts from Business Done in This State for Margin 171.105 Determination of Gross Receipts from Entire Business for Margin 171.1055 Exclusion of Certain Receipts for Margin Apportionment 171.106 Apportionment of Margin to This State 171.107 Deduction of Cost of Solar Energy Device from Margin Apportioned to This State 171.108 Deduction of Cost of Clean Coal Project from Margin Apportioned to This State 171.109 Deduction of Relocation Costs by Certain Taxable Entities from Margin Apportioned to This State 171.111 Temporary Credit on Taxable Margin 171.1121 Gross Receipts for Margin

Subchapter D. Payment of Tax

171.151 Privilege Period Covered by Tax 171.152 Date on Which Payment Is Due 171.1532 Business on Which Tax on Net Taxable Margin Is Based 171.154 Payment to Comptroller 171.158 Payment by Foreign Taxable Entity Before Withdrawal from State

Subchapter E. Reports and Records

171.201 Initial Report 171.202 Annual Report 171.2022 Exemption from Reporting Requirements 171.203 Public Information Report 171.204 Information Report 171.205 Additional Information Required by Comptroller 171.206 Confidential Information 171.207 Information Not Confidential 171.208 Prohibition of Disclosure of Information 171.209 Right of Owner to Examine or Receive Reports 171.210 Permitted Use of Confidential Information 171.211 Examination of Records 171.212 Report of Changes to Federal Income Tax Return 171.2125 Calculating Cost of Goods or Compensation in Professional Employer Services Arrangements

Subchapter F. Forfeiture of Corporate and Business Privileges

171.251 Forfeiture of Corporate Privileges 171.2515 Forfeiture of Right of Taxable Entity to Transact Business in This State 171.252 Effects of Forfeiture 171.253 Suit on Cause of Action Arising Before Forfeiture 171.254 Exception to Forfeiture 171.255 Liability of Director and Officers 171.256 Notice of Forfeiture 171.257 Judicial Proceeding Not Required for Forfeiture 171.258 Revival of Corporate Privileges 171.259 Banking Corporations and Savings and Loan Associations 171.260 Savings and Loan Association

Subchapter G. Forfeiture of Charter or Certificate of Authority

171.301 Grounds for Forfeiture of Charter or Certificate of Authority 171.3015 Forfeiture of Certificate or Registration of Taxable Entity 171.302 Certification by Comptroller 171.303 Suit for Judicial Forfeiture 171.304 Record of Judicial Forfeiture 171.305 Revival of Charter or Certificate of Authority After Judicial Forfeiture 171.306 Suit to Set Aside Judicial Forfeiture 171.307 Record of Suit to Set Aside Judicial Forfeiture 171.308 Corporate Privileges After Judicial Forfeiture Is Set Aside 171.309 Forfeiture by Secretary of State 171.310 Judicial Proceeding Not Required for Forfeiture by Secretary of State 171.311 Record of Forfeiture by Secretary of State 171.312 Revival of Charter or Certificate of Authority After Forfeiture by Secretary of State 171.3125 Revival of Certificate or Registration of Taxable Entity After Forfeiture by Secretary of State 171.313 Proceeding to Set Aside Forfeiture by Secretary of State 171.314 Corporate Privileges After Forfeiture by Secretary of State Is Set Aside 171.315 Use of Corporate Name After Revival of Charter or Certificate of Authority 171.316 Banking Corporations 171.317 Savings and Loan Associations

Subchapter H. Enforcement

171.351 Venue of Suit to Enforce Chapter 171.352 Authority to Restrain or Enjoin 171.353 Appointment of Receiver 171.354 Agent for Service of Process 171.355 Service of Process on Secretary of State 171.361 Penalty for Disclosure of Information on Report 171.362 Penalty for Failure to Pay Tax or File Report 171.363 Wilful and Fraudulent Acts

Subchapter I. Disposition of Revenue

171.401 Revenue Deposited in General Revenue Fund 171.4011 Allocation of Certain Revenue to Property Tax Relief Fund

Subchapter J. Refunds

171.501 Refund for Job Creation in Enterprise Zone

Subchapter K. Tax Credit for Certain Housing Developments

171.551 Definitions 171.552 Entitlement to Credit 171.553 Application for and Issuance of Allocation Certificate 171.554 Amount of Credits; Method of Award 171.555 Apportionment of Credit 171.556 Length of Credit; Limitation 171.557 Carry Forward or Backward 171.558 Recapture 171.559 Allocation of Credit 171.560 Filing Requirements After Allocation 171.561 Application for Credit 171.562 Rules; Procedures 171.563 Compliance Monitoring 171.564 Inclusion of Information in Low Income Housing Plan 171.565 Expiration of Authority to Allocate Credits 171.566 Priority Allocation for Certain Qualified Developments

Subchapter L. Tax Credit for Clean Energy Project

171.601 Definition 171.602 Tax Credit for Clean Energy Project

Subchapter P. Strong Families Tax Credit

For expiration of this subchapter, see Section 171.812.

171.801 Definitions 171.802 Eligibility for Credit 171.803 Certification as Eligible Organization 171.804 Duties of Eligible Organization 171.805 Amount of Credit; Limitation on Total Credits 171.806 Carryforward 171.807 Application for Credit 171.808 Credit for Designated Contribution Made by Member of Combined Group or Tiered Partnership Agreement 171.809 Assignment Prohibited; Exception 171.810 Fees 171.811 Rules 171.812 Expiration

Subchapter T. Tax Credit for Certain Research and Development Activities

171.9201 Definition 171.9202 Qualified Research Expense 171.9203 Eligibility for Credit 171.9204 Amount of Credit 171.9205 Credit for Certain Taxable Entities That Owe No Tax 171.9206 Combined Reporting 171.9207 Limitation 171.9208 Carryforward 171.9209 Assignment Prohibited 171.9210 Application for Credit 171.9211 Rules 171.9212 Reporting of Estimates 171.9213 Deposit of Certain Revenue