2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter A. General Provisions › Section 228.001. General Definitions

Sec. 228.001.  GENERAL DEFINITIONS.  In this chapter:
(1)  "Allocation date" means the date on which certified investors are allocated premium tax credits.
(2)  "Certified capital" means cash invested by a certified investor that fully funds the purchase price of an equity interest in a certified capital company or a qualified debt instrument issued by the company.
(3)  "Certified capital company" means a partnership, corporation, or trust or limited liability company, whether organized on a profit or nonprofit basis, that:
(A)  has as the company's primary business activity the investment of cash in qualified businesses; and
(B)  is certified as meeting the criteria of this chapter.
(4)  "Certified investor" means an insurer or other person that has state premium tax liability and that contributes certified capital pursuant to a premium tax credit allocation under this chapter.
(5)  "Early stage business" means a business described by Section 228.152(a).
(5-a)  "Low-income community" has the meaning assigned by Section 45D(e), Internal Revenue Code of 1986.
(6)  "Person" means an individual or entity, including a corporation, general or limited partnership, or trust or limited liability company.
(7)  "Premium tax credit allocation claim" means a claim for allocation of premium tax credits.
(7-a)  "Program One" means the program for allocation and investment of certified capital under this chapter before January 1, 2007.
(7-b)  "Program Two" means the program for allocation and investment of certified capital under this chapter on or after January 1, 2007.
(8)  "Qualified business" means a business described by Section 228.201.
(9)  "Qualified debt instrument" means a debt instrument issued by a certified capital company, at par value or a premium, that:
(A)  has an original maturity date that is a date on or after the fifth anniversary of the date of issuance;
(B)  has a repayment schedule that is not faster than a level principal amortization over five years; and
(C)  does not have interest, distribution, or payment features that are related to:
(i)  the profitability of the company; or
(ii)  the performance of the company's investment portfolio.
(10)  "Qualified investment" means the investment of cash by a certified capital company in a qualified business for the purchase of any debt, debt participation, equity, or hybrid security of any nature or description, including a debt instrument or security that has the characteristics of debt but that provides for conversion into equity or equity participation instruments such as options or warrants.
(11)  "State premium tax liability" means:
(A)  any liability incurred by any person under Chapter 221, 222, 223, 223A, or 224; or
(B)  if the tax liability imposed under Chapter 221, 222, 223, or 224 is eliminated or reduced, any tax liability imposed on an insurer or other person that had premium tax liability under Subchapter A, Chapter 4, or Article 9.59 as those laws existed on January 1, 2003.
(12)  "Strategic investment business" means a business described by Section 228.153(a).
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 14.001(a), eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 4, eff. June 14, 2013.