2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter I. Reports, Payments, and Methods of Reporting › Section 151.4291. Tax Refunds for Defense Readjustment Projects

Sec. 151.4291.  TAX REFUNDS FOR DEFENSE READJUSTMENT PROJECTS.
(a)  A defense readjustment project is eligible for a refund in the amount provided by this section of the taxes imposed by this chapter on purchases of:
(1)  equipment or machinery sold to a defense readjustment project for use in a readjustment zone;
(2)  building materials sold to a defense readjustment project for use in remodeling, rehabilitating, or constructing a structure in a readjustment zone;
(3)  labor for remodeling, rehabilitating, or constructing a structure by a defense readjustment project in a readjustment zone;  and
(4)  electricity and natural gas purchased and consumed in the normal course of business in the readjustment zone.
(b)  Subject to the limitations provided by Subsection (c) of this section, a defense readjustment project qualifies for a refund of taxes under this section of $2,500 for each new permanent job or job that has been retained by the defense readjustment project for a qualified employee.
(c)  The total amount of tax refund that a defense readjustment project may apply for in a state fiscal year may not exceed $250,000. If a defense readjustment project qualifies in a state fiscal year for a refund of taxes in an amount in excess of the limitation provided by this subsection, it may apply for a refund of those taxes in a subsequent year, subject to the $250,000 limitation for each year.  However, a defense readjustment project may not apply for a refund under this section after the end of the state fiscal year immediately following the state fiscal year in which the defense readjustment project's designation as a defense readjustment project expires or is removed.  The total amount that may be refunded to a defense readjustment project under this section may not exceed the amount determined by multiplying $250,000 by the number of state fiscal years during which the defense readjustment project created one or more jobs for qualified employees.
(d)  To receive a refund under this section, a defense readjustment project must apply to the comptroller for the refund.  The Texas Economic Development Bank shall provide the comptroller with the assistance that the comptroller requires in administering this section.
(e)  In this section:
(1)  "Defense readjustment project" means a person designated by the Texas Economic Development Bank as a defense readjustment project under Chapter 2310, Government Code.
(2)  "Readjustment zone" and "qualified employee" have the meanings assigned to those terms by Section 2310.001, Government Code.
(3)  "New permanent job" means a new employment position created by a qualified business as described by Section 2310.302, Government Code, that:
(A)  has provided at least 1,820 hours of employment a year to a qualified employee;  and
(B)  is intended to exist during the period that the qualified business is designated as a defense readjustment project under Chapter 2310, Government Code.
(f)  For the purposes of Subsection (a), items bought by a project after the date it is designated as a project, or within 90 days before the date of designation, may be considered eligible for a refund.
(g)  The refund provided by this section is conditioned on the defense readjustment project maintaining at least the same level of employment of qualified employees as existed at the time it qualified for a refund for a period of three years from that date.  The comptroller shall annually certify to the Legislative Budget Board whether that level of employment of qualified employees has been maintained.  On certifying that such a level has not been maintained, the comptroller shall assess that portion of the refund attributable to any such decrease in employment, including penalty and interest from the date of the refund.
(h)  Notwithstanding Section 171.103 or 171.1032, a receipt from a service performed by a defense readjustment project in a readjustment zone is not a receipt from business done in this state.
Added by Acts 1997, 75th Leg., ch. 114, Sec. 2, eff. May 19, 1997.  Amended by Acts 1999, 76th Leg., ch. 1467, Sec. 2.27, 2.28, eff. Oct. 1, 1999;  Acts 2001, 77th Leg., ch. 1134, Sec. 1.07, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 1134, Sec. 2.05, eff. Sept. 1, 2005;  Acts 2003, 78th Leg., ch. 814, Sec. 3.54, 3.55, eff. Sept. 1, 2003.
For expiration of this section, see Subsection (m).