reglab/statecodes huggingface dataset:
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 C. Application for and General Operation of Certified Capital Companies › Section 228.108. Offering Material Used by Certified Capital Company

Sec. 228.108.  OFFERING MATERIAL USED BY CERTIFIED CAPITAL COMPANY.  Any offering material involving the sale of securities of the certified capital company must include the following statement:
By authorizing the formation of a certified capital company, the State of Texas does not endorse the quality of management or the potential for earnings of the company and is not liable for damages or losses to a certified investor in the company.  Use of the word "certified" in an offering does not constitute a recommendation or endorsement of the investment by the comptroller of public accounts.  If applicable provisions of law are violated, the State of Texas may require forfeiture of unused premium tax credits and repayments of used premium tax credits.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.151. Required Schedule of Investment

Sec. 228.151.  REQUIRED SCHEDULE OF INVESTMENT.  (a)  Before the third anniversary of a certified capital company's allocation date, the company must make qualified investments in an amount cumulatively equal to at least 30 percent of the company's certified capital, subject to Section 228.153(b).
(b)  Before the fifth anniversary of a certified capital company's allocation date, the company must make qualified investments in an amount cumulatively equal to at least 50 percent of the company's certified capital, subject to Sections 228.152(b) and 228.153(b).
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.152. Investment in Early Stage Business Required

Sec. 228.152.  INVESTMENT IN EARLY STAGE BUSINESS REQUIRED.  (a)  In this section, "early stage business" means a qualified business that:
(1)  is involved, at the time of a certified capital company's first investment, in activities related to the development of initial product or service offerings, such as prototype development or establishment of initial production or service processes;
(2)  was initially organized less than two years before the date of the certified capital company's first investment; or
(3)  during the fiscal year immediately preceding the year of the certified capital company's first investment had, on a consolidated basis with the business's affiliates, gross revenues of not more than $2 million as determined in accordance with generally accepted accounting principles.
(b)  A certified capital company must place at least 50 percent of the amount of qualified investments required by Section 228.151(b) in early stage businesses.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.153. Investment in Strategic Investment Business Required

Sec. 228.153.  INVESTMENT IN STRATEGIC INVESTMENT BUSINESS REQUIRED.  (a)  In this section:
(1)  "Strategic investment area" means an area of this state that qualifies as a strategic investment area under Subchapter O, Chapter 171, Tax Code, or, after the date that subchapter expires, an area that qualified as a strategic investment area under that subchapter immediately before that date.
(2)  "Strategic investment business" means a qualified business that:
(A)  has the business's principal business operations located in one or more strategic investment areas; and
(B)  intends to maintain business operations in the strategic investment areas after receipt of the investment by the certified capital company.
(b)  A certified capital company must place at least 30 percent of the amount of qualified investments required by Sections 228.151(a) and (b) in a strategic investment business.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.154. Certified Capital Not Invested in Qualified Investments

Sec. 228.154.  CERTIFIED CAPITAL NOT INVESTED IN QUALIFIED INVESTMENTS.  A certified capital company shall invest any certified capital not invested in qualified investments only in:
(1)  cash deposited with a federally insured financial institution;
(2)  certificates of deposit in a federally insured financial institution;
(3)  investment securities that are:
(A)  obligations of the United States or agencies or instrumentalities of the United States; or
(B)  obligations that are guaranteed fully as to principal and interest by the United States;
(4)  debt instruments rated at least "A" or the equivalent by a nationally recognized credit rating organization, or issued by, or guaranteed with respect to payment by, an entity whose unsecured indebtedness is rated at least "A" or the equivalent by a nationally recognized credit rating organization, and which indebtedness is not subordinated to other unsecured indebtedness of the issuer or the guarantor;
(5)  obligations of this state or a municipality or political subdivision of this state; or
(6)  any other investment approved in advance in writing by the comptroller.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.155. Computation of Amount of Investments

Sec. 228.155.  COMPUTATION OF AMOUNT OF INVESTMENTS.  (a)  The aggregate cumulative amount of all qualified investments made by a certified capital company after the company's allocation date shall be considered in the computation of the percentage requirements under this subchapter.
(b)  A certified capital company may invest proceeds received from a qualified investment in another qualified investment, and that investment counts toward any requirement of this chapter with respect to investments of certified capital.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.156. Limit on Qualified Investment

Sec. 228.156.  LIMIT ON QUALIFIED INVESTMENT.  A certified capital company may not make a qualified investment at a cost to the company that is greater than 15 percent of the company's total certified capital at the time of investment.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.157. Distributions by Certified Capital Company

Sec. 228.157.  DISTRIBUTIONS BY CERTIFIED CAPITAL COMPANY.  (a)  In this section, "qualified distribution" means any distribution or payment from certified capital by a certified capital company in connection with:
(1)  the reasonable costs and expenses of forming, syndicating, managing, and operating the company, provided that the distribution or payment is not made directly or indirectly to a certified investor, including:
(A)  reasonable and necessary fees paid for professional services, including legal and accounting services, related to the company's formation and operation; and
(B)  an annual management fee in an amount that does not exceed 2.5 percent of the company's certified capital; and
(2)  a projected increase in federal or state taxes, including penalties and interest related to state and federal income taxes, of the company's equity owners resulting from the earnings or other tax liability of the company to the extent that the increase is related to the ownership, management, or operation of the company.
(b)  A certified capital company may make a qualified distribution at any time.  To make a distribution or payment other than a qualified distribution, a company must have made qualified investments in an amount cumulatively equal to 100 percent of the company's certified capital.
(c)  If a business in which a qualified investment is made relocates the business's principal business operations to another state during the term of the certified capital company's investment in the business, the cumulative amount of qualified investments made by the certified capital company for purposes of satisfying the requirements of Subsection (b) only is reduced by the amount of the certified capital company's qualified investments in the business that has relocated.
(d)  Subsection (c) does not apply if the business demonstrates that the business has returned the business's principal business operations to this state not later than the 90th day after the date of the relocation.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 D. Investment by Certified Capital Companies › Section 228.158. Repayment of Debt

Sec. 228.158.  REPAYMENT OF DEBT.  Notwithstanding Section 228.157(b), a certified capital company may make repayments of principal and interest on the company's indebtedness without any restriction, including repaying the company's indebtedness on which certified investors earned premium tax credits.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 E. Qualified Business › Section 228.201. Definition of Qualified Business

Sec. 228.201.  DEFINITION OF QUALIFIED BUSINESS.  (a)  In this chapter, "qualified business" means a business that complies with this section at the time of a certified capital company's first investment in the business.
(b)  A qualified business must:
(1)  be headquartered in this state and intend to remain in this state after receipt of the certified capital company's investment; and
(2)  have the business's principal business operations located in this state and intend to maintain business operations in this state after receipt of the certified capital company's investment.
(c)  A qualified business must agree to use the qualified investment primarily to:
(1)  support business operations in this state, other than advertising, promotion, and sales operations which may be conducted outside of this state; or
(2)  in the case of a start-up company, establish and support business operations in this state, other than advertising, promotion, and sales operations which may be conducted outside of this state.
(d)  A qualified business may not have more than 100 employees and must:
(1)  employ at least 80 percent of the business's employees in this state; or
(2)  pay 80 percent of the business's payroll to employees in this state.
(e)  A qualified business must be primarily engaged in:
(1)  manufacturing, processing, or assembling products;
(2)  conducting research and development; or
(3)  providing services.
(f)  A qualified business may not be primarily engaged in:
(1)  retail sales;
(2)  real estate development;
(3)  the business of insurance, banking, or lending; or
(4)  the provision of professional services provided by accountants, attorneys, or physicians.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 E. Qualified Business › Section 228.202. Relocation of Principal Business Operations

Sec. 228.202.  RELOCATION OF PRINCIPAL BUSINESS OPERATIONS.  If, before the 90th day after the date a certified capital company makes an investment in a qualified business, the qualified business moves the business's principal business operations from this state, the investment may not be considered a qualified investment for purposes of the percentage requirements under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 E. Qualified Business › Section 228.203. Evaluation of Business by Comptroller

Sec. 228.203.  EVALUATION OF BUSINESS BY COMPTROLLER.  (a)  A certified capital company may, before making an investment in a business, request a written opinion from the comptroller as to whether the business in which the company proposes to invest is a qualified business, an early stage business, or a strategic investment or low-income community business.
(b)  Not later than the 15th business day after the date of the receipt of a request under Subsection (a), the comptroller shall:
(1)  determine whether the business meets the definition of a qualified business, an early stage business, or a strategic investment or low-income community business, as applicable, and notify the certified capital company of the determination and provide an explanation of the determination; or
(2)  notify the company that an additional 15 days will be needed to review the request and make the determination.
(c)  If the comptroller fails to notify the certified capital company with respect to the proposed investment within the period specified by Subsection (b), the business in which the company proposes to invest is considered to be a qualified business, an early stage business, or a strategic investment or low-income community business, as appropriate.
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. 14.003(a), eff. September 1, 2009.
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 E. Qualified Business › Section 228.204. Continuation of Classification as Qualified Business; Follow-on Investments Authorized

Sec. 228.204.  CONTINUATION OF CLASSIFICATION AS QUALIFIED BUSINESS; FOLLOW-ON INVESTMENTS AUTHORIZED.  (a)  A business that is classified as a qualified business at the time of the first investment in the business by a certified capital company:
(1)  remains classified as a qualified business; and
(2)  may receive follow-on investments from any certified capital company.
(b)  Except as provided by Subsection (c), a follow-on investment made under Subsection (a) is a qualified investment even though the business may not meet the definition of a qualified business at the time of the follow-on investment.
(c)  A follow-on investment does not qualify as a qualified investment if, at the time of the follow-on investment, the qualified business no longer has the business's principal business operations in this state.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 F. Premium Tax Credit › Section 228.251. Premium Tax Credit

Sec. 228.251.  PREMIUM TAX CREDIT.  (a)  A certified investor who makes an investment of certified capital shall earn in the year of investment a vested credit against state premium tax liability equal to 100 percent of the certified investor's investment of certified capital, subject to the limits imposed by this chapter.
(b)  With respect to credits earned as a result of investments made under Program One, beginning with the tax report due March 1, 2009, for the 2008 tax year, a certified investor may take up to 25 percent of the vested premium tax credit in any taxable year of the certified investor.  The credit may not be applied to estimated payments due in 2008.
(c)  With respect to credits earned as a result of investments made under Program Two, beginning with the tax report due March 1, 2013, for the 2012 tax year, a certified investor may take up to 25 percent of the vested premium tax credit in any taxable year of the certified investor.  The credit may not be applied to estimated payments due in 2012.
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. 14.004(a), eff. September 1, 2009.
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 F. Premium Tax Credit › Section 228.252. Limit on Premium Tax Credit

Sec. 228.252.  LIMIT ON PREMIUM TAX CREDIT.  (a)  The credit to be applied against state premium tax liability of a certified investor in any one year may not exceed the state premium tax liability of the investor for the taxable year.
(b)  A certified investor may carry forward any unused credit against state premium tax liability indefinitely until the premium tax credits are used.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 F. Premium Tax Credit › Section 228.253. Premium Tax Credit Allocation Claim Required

Sec. 228.253.  PREMIUM TAX CREDIT ALLOCATION CLAIM REQUIRED.  (a)  A certified investor must prepare and execute a premium tax credit allocation claim on a form provided by the comptroller.
(b)  The certified capital company must have filed the claim with the comptroller on the date on which the comptroller accepted premium tax credit allocation claims on behalf of certified investors with respect to Program One or Program Two, as applicable, under the comptroller's rules.
(c)  The premium tax credit allocation claim form must include an affidavit of the certified investor under which the certified investor becomes legally bound and irrevocably committed to make an investment of certified capital in a certified capital company in the amount allocated even if the amount allocated is less than the amount of the claim, subject only to the receipt of an allocation under Section 228.255.
(d)  A certified investor may not claim a premium tax credit under Section 228.251 for an investment that has not been funded, without regard to whether the certified investor has committed to fund the investment.
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. 14.005(a), eff. September 1, 2009.
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 F. Premium Tax Credit › Section 228.254. Total Limit on Premium Tax Credits

Sec. 228.254.  TOTAL LIMIT ON PREMIUM TAX CREDITS.  (a)  The total amount of certified capital for which premium tax credits may be allowed under this chapter for all years in which premium tax credits are allowed is:
(1)  $200 million for Program One; and
(2)  $200 million for Program Two.
(b)  The total amount of certified capital for which premium tax credits may be allowed for all certified investors under this chapter may not exceed the amount that would entitle all certified investors in certified capital companies to take total credits of $50 million in a year with respect to Program One and $50 million in a year with respect to Program Two.
(c)  A certified capital company and the company's affiliates may not file premium tax credit allocation claims with respect to Program One or Program Two, as applicable, in excess of the maximum amount of certified capital for which premium tax credits may be allowed for that program as provided by this section.
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. 14.006(a), eff. September 1, 2009.
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 F. Premium Tax Credit › Section 228.255. Allocation of Premium Tax Credit

Sec. 228.255.  ALLOCATION OF PREMIUM TAX CREDIT.  (a)  If the total premium tax credits claimed by all certified investors with respect to Program One or Program Two, as applicable, exceeds the total limits on premium tax credits established for that program by Section 228.254(a), the comptroller shall allocate the total amount of premium tax credits allowed under this chapter to certified investors in certified capital companies on a pro rata basis in accordance with this section.
(b)  The pro rata allocation for each certified investor shall be the product of:
(1)  a fraction, the numerator of which is the amount of the premium tax credit allocation claim filed on behalf of the investor with respect to Program One or Program Two, as applicable, and the denominator of which is the total amount of all premium tax credit allocation claims filed on behalf of all certified investors with respect to that program; and
(2)  the total amount of certified capital for which premium tax credits may be allowed with respect to that program under this chapter.
(c)  The maximum amount of certified capital for which premium tax credit allocation may be allowed on behalf of a single certified investor and the investor's affiliates with respect to Program One or Program Two, as applicable, whether by one or more certified capital companies, may not exceed the greater of:
(1)  $10 million; or
(2)  15 percent of the maximum aggregate amount available with respect to that program under Section 228.254(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. 14.007(a), eff. September 1, 2009.
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 F. Premium Tax Credit › Section 228.256. Treatment of Credits and Capital

Sec. 228.256.  TREATMENT OF CREDITS AND CAPITAL.  In any case under this code or another insurance law of this state in which the assets of a certified investor are examined or considered, the certified capital may be treated as an admitted asset,  subject to the applicable statutory valuation procedures.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 F. Premium Tax Credit › Section 228.257. Transferability of Credit

Sec. 228.257.  TRANSFERABILITY OF CREDIT.  (a)  A certified investor may transfer or assign premium tax credits only in compliance with the rules adopted under Section 228.052.
(b)  The transfer or assignment of a premium tax credit does not affect the schedule for taking the premium tax credit under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 F. Premium Tax Credit › Section 228.258. Impact of Premium Tax Credit on Insurance Ratemaking

Sec. 228.258.  IMPACT OF PREMIUM TAX CREDIT ON INSURANCE RATEMAKING.  A certified investor is not required to reduce the amount of premium tax included by the investor in connection with ratemaking for an insurance contract written in this state because of a reduction in the investor's Texas premium tax derived from premium tax credits granted under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 F. Premium Tax Credit › Section 228.259. Retaliatory Tax

Sec. 228.259.  RETALIATORY TAX.  A certified investor claiming a credit against state premium tax liability earned through an investment in a company is not required to pay any additional retaliatory tax levied under Chapter 281 as a result of claiming that credit.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 G. Enforcement › Section 228.301. Annual Review by Comptroller

Sec. 228.301.  ANNUAL REVIEW BY COMPTROLLER.  (a)  The comptroller shall conduct an annual review of each certified capital company to:
(1)  ensure that the company:
(A)  continues to satisfy the requirements of this chapter; and
(B)  has not made any investment in violation of this chapter; and
(2)  determine the eligibility status of the company's qualified investments.
(b)  Each certified capital company shall pay the cost of the annual review according to a reasonable fee schedule adopted by the comptroller.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 G. Enforcement › Section 228.302. Decertification of Certified Capital Company

Sec. 228.302.  DECERTIFICATION OF CERTIFIED CAPITAL COMPANY.  (a)  A material violation of Section 228.105, 228.106, 228.107, 228.151, 228.152, 228.153, 228.154, 228.155, 228.156, 228.202, or 228.204 is grounds for decertification of a certified capital company.
(b)  If the comptroller determines that a certified capital company is not in compliance with a law listed in Subsection (a), the comptroller shall notify the company's officers in writing that the company may be subject to decertification after the 120th day after the date the notice is mailed unless the company:
(1)  corrects the deficiencies; and
(2)  returns to compliance with the law.
(c)  The comptroller may decertify a certified capital company, after opportunity for hearing, if the comptroller finds that the company is not in compliance with a law listed in Subsection (a) at the end of the period established by Subsection (b).
(c-1)  Notwithstanding any other provision of this section, the comptroller may decertify a certified capital company if the comptroller receives a request in writing from the certified capital company stating that the certified capital company has made qualified investments in an amount cumulatively equal to 100 percent of the company's certified capital.
(d)  Decertification under this section is effective on receipt of notice of decertification by the certified capital company.
(e)  The comptroller shall notify any appropriate state agency of a decertification of a certified capital company.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 53 (H.B. 3031), Sec. 1, eff. May 21, 2015.
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 G. Enforcement › Section 228.303. Administrative Penalty

Sec. 228.303.  ADMINISTRATIVE PENALTY.  (a)  The comptroller may impose an administrative penalty on a certified capital company that violates this chapter.
(b)  The amount of the penalty may not exceed $25,000. Each day a violation continues or occurs is a separate violation for the purpose of imposing the penalty.  The amount of the penalty shall be based on:
(1)  the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;
(2)  the economic harm caused by the violation;
(3)  the history of previous violations;
(4)  the amount necessary to deter a future violation;
(5)  efforts to correct the violation; and
(6)  any other matter that justice may require.
(c)  A certified capital company assessed a penalty under this chapter may request a redetermination as provided by Chapter 111, Tax Code.
(d)  The attorney general may sue to collect the penalty.
(e)  A proceeding to impose the penalty is a contested case under Chapter 2001, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 H. Recapture and Forfeiture of Premium Tax Credits › Section 228.351. Recapture and Forfeiture of Premium Tax Credit Following Decertification

Sec. 228.351.  RECAPTURE AND FORFEITURE OF PREMIUM TAX CREDIT FOLLOWING DECERTIFICATION.  (a)  Decertification of a certified capital company may, in accordance with this section, cause:
(1)  the recapture of premium tax credits previously claimed by the company's certified investors; and
(2)  the forfeiture of future premium tax credits to be claimed by the investors.
(b)  Decertification of a certified capital company on or before the third anniversary of the company's allocation date causes the recapture of any premium tax credits previously claimed and the forfeiture of any future premium tax credits to be claimed by a certified investor with respect to the company.
(c)  For a certified capital company that meets the requirements for continued certification under Section 228.151(a) and subsequently fails to meet the requirements for continued certification under Subsection (b) of that section:
(1)  any premium tax credit that has been or will be taken by a certified investor on or before the third anniversary of the allocation date is not subject to recapture or forfeiture; and
(2)  any premium tax credit that has been or will be taken by a certified investor after the third anniversary of the company's allocation date is subject to recapture or forfeiture.
(d)  For a certified capital company that has met the requirements for continued certification under Section 228.151 and is subsequently decertified:
(1)  any premium tax credit that has been or will be taken by a certified investor on or before the fifth anniversary of the allocation date is not subject to recapture or forfeiture; and
(2)  any premium tax credit to be taken after the fifth anniversary of the allocation date is subject to forfeiture only if the company is decertified on or before the fifth anniversary of the company's allocation date.
(e)  For a certified capital company that has invested an amount cumulatively equal to 100 percent of the company's certified capital in qualified investments, any premium tax credit claimed or to be claimed by a certified investor is not subject to recapture or forfeiture under this section.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 H. Recapture and Forfeiture of Premium Tax Credits › Section 228.352. Notice of Recapture and Forfeiture of Premium Tax Credit

Sec. 228.352.  NOTICE OF RECAPTURE AND FORFEITURE OF PREMIUM TAX CREDIT.  The comptroller shall send written notice to the address of each certified investor whose premium tax credit is subject to recapture or forfeiture, using the address shown on the investor's last premium tax filing.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
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 H. Recapture and Forfeiture of Premium Tax Credits › Section 228.353. Indemnity Agreements and Insurance Authorized

Sec. 228.353.  INDEMNITY AGREEMENTS AND INSURANCE AUTHORIZED.  (a)  A certified capital company may agree to indemnify, or purchase insurance for the benefit of, a certified investor for losses resulting from the recapture or forfeiture of premium tax credits under Section 228.351.
(b)  Any guaranty, indemnity, bond, insurance policy, or other payment undertaking made under this section may not be provided by more than one certified investor of the certified capital company or affiliate of the certified investor.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 229 - Cooperative Agreements With Other States › Section 229.001. Definitions

Sec. 229.001.  DEFINITIONS.  In this chapter:
(1)  "Agent" includes:
(A)  a surplus lines agent, as defined by Section 981.002;
(B)  a person licensed as a surplus lines agent by another state; and
(C)  any other person who performs the acts of an agent, whether through an oral, written, electronic, or other form of communication, by soliciting, negotiating, procuring, or collecting a premium on an insurance contract.
(2)  "Insurer" has the meaning assigned by Section 101.002 and includes:
(A)  an insurer that does not hold a certificate of authority in this state;
(B)  an eligible surplus lines insurer; and
(C)  an insurer that holds a certificate of authority in this state but performs acts outside the scope of its authority under the certificate.
(3)  "Premium" includes:
(A)  any consideration for insurance, including:
(i)  a premium;
(ii)  a membership fee;
(iii)  an assessment; and
(iv)  dues; or
(B)  any other meaning of the term adopted in a cooperative agreement.
(4)  "Processing entity" means a processing center or clearinghouse established under a cooperative agreement.
(5)  "Stamping office" means the Surplus Lines Stamping Office of Texas or similar stamping offices in other states.
Added by Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 11, eff. June 15, 2007.
Renumbered from Insurance Code, Section 228.001 by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 27.001(60), eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 233 - Credit Against Certain Taxes for Certain Housing Developments › Subchapter A. General Provisions › Section 233.0001. Definitions

Sec. 233.0001.  DEFINITIONS.  In this chapter:
(1)  "Allocation certificate," "credit," and "qualified development" have the meanings assigned by Section 171.551, Tax Code.
(2)  "State premium tax liability" means any tax liability incurred by an entity under Chapter 221, 222, 223, or 224.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 2, eff. January 1, 2024.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 233 - Credit Against Certain Taxes for Certain Housing Developments › Subchapter B. Credit › Section 233.0051. Credit

Sec. 233.0051.  CREDIT.  (a)  An entity is eligible for a credit against the entity's state premium tax liability in the amount and under the limitations provided by this chapter if the entity owns a direct or indirect interest in a qualified development.
(b)  An entity that claims a credit under this chapter is not required to pay any additional retaliatory tax under Chapter 281 as a result of claiming the credit.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 2, eff. January 1, 2024.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 233 - Credit Against Certain Taxes for Certain Housing Developments › Subchapter B. Credit › Section 233.0052. Length of Credit; Limitations

Sec. 233.0052.  LENGTH OF CREDIT; LIMITATIONS.  (a)  The entity shall claim the credit in the manner provided by Section 171.556, Tax Code.
(b)  The total credit claimed under this chapter for a report, including any carry forward or backward described by Subsection (c), may not exceed the amount of the entity's state premium tax liability due for the report after any other applicable credit.
(c)  The entity may carry a surplus credit forward or backward as provided by Section 171.557, Tax Code.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 2, eff. January 1, 2024.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 233 - Credit Against Certain Taxes for Certain Housing Developments › Subchapter B. Credit › Section 233.0053. Application for Credit

Sec. 233.0053.  APPLICATION FOR CREDIT.  (a)  An entity must apply for a credit under this chapter on or with the tax report for the tax year for which the credit is claimed and submit with the application a copy of the allocation certificate issued in connection with the qualified development and any other information required by Subchapter K, Chapter 171, Tax Code.
(b)  The comptroller shall adopt a form for the application for the credit.  An entity must use this form in applying for the credit.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 2, eff. January 1, 2024.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 233 - Credit Against Certain Taxes for Certain Housing Developments › Subchapter B. Credit › Section 233.0054. Rules; Procedures

Sec. 233.0054.  RULES; PROCEDURES.  The comptroller and the Texas Department of Housing and Community Affairs, in consultation with each other, shall adopt rules and procedures to implement, administer, and enforce this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 2, eff. January 1, 2024.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 233 - Credit Against Certain Taxes for Certain Housing Developments › Subchapter B. Credit › Section 233.0055. Applicable Provisions

Sec. 233.0055.  APPLICABLE PROVISIONS.  The provisions of Subchapter K, Chapter 171, Tax Code, relating to recapture, allocation of credit, apportionment of credit, length of credit, filing requirements after allocation, and compliance monitoring apply to the credit authorized by this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 2, eff. January 1, 2024.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 233 - Credit Against Certain Taxes for Certain Housing Developments › Subchapter C. Expiration of Authority to Allocate Credits › Section 233.0101. Expiration of Allocation Authority; Use of Allocated Credits

Sec. 233.0101.  EXPIRATION OF ALLOCATION AUTHORITY; USE OF ALLOCATED CREDITS. (a) The authority of the Texas Department of Housing and Community Affairs to reserve credit amounts and issue allocation certificates for purposes of Subchapter K, Chapter 171, Tax Code, and this chapter expires as provided by Section 171.565(a), Tax Code.
(b)  An entity may claim a credit under this chapter on a tax report as provided by Section 171.565(b), Tax Code.
Added by Acts 2023, 88th Leg., R.S., Ch. 811 (H.B. 1058), Sec. 2, eff. January 1, 2024.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle C - Insurance Maintenance Taxes › Chapter 251 - General Provisions › Section 251.001. Determining Rate of Assessment

Sec. 251.001.  DETERMINING RATE OF ASSESSMENT.  (a)  The commissioner shall annually determine the rate of assessment of each maintenance tax imposed under this subtitle.
(b)  In determining the rate of assessment, the commissioner shall consider the requirement to reimburse the appropriate portion of the general revenue fund under Section 201.052.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle C - Insurance Maintenance Taxes › Chapter 251 - General Provisions › Section 251.002. Duty to Advise Comptroller of Rate

Sec. 251.002.  DUTY TO ADVISE COMPTROLLER OF RATE.  The commissioner shall advise the comptroller of the applicable rate of assessment of a maintenance tax not later than the 45th day before the due date of the tax report for the period for which that tax is due.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle C - Insurance Maintenance Taxes › Chapter 251 - General Provisions › Section 251.003. Effect of Late Advisement of Rate

Sec. 251.003.  EFFECT OF LATE ADVISEMENT OF RATE.  (a)  Except as provided by Subsection (b), if the commissioner does not advise the comptroller of the applicable rate of assessment of a maintenance tax by the date required by Section 251.002, the rate of assessment is the rate applied in the previous tax period.
(b)  If the commissioner advises the comptroller of the applicable rate of assessment of a maintenance tax after the tax has been assessed, the comptroller shall:
(1)  advise each taxpayer in writing of the amount of any additional taxes due;  or
(2)  refund any excess taxes paid.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle C - Insurance Maintenance Taxes › Chapter 251 - General Provisions › Section 251.004. Deposit of Maintenance Taxes

Sec. 251.004.  DEPOSIT OF MAINTENANCE TAXES.  (a)  Except as provided by Subsection (b), maintenance taxes collected under this subtitle shall be deposited in the general revenue fund and reallocated to the Texas Department of Insurance operating account.
(b)  Each state fiscal year, the comptroller shall reallocate to the floodplain management account established under Section 16.453, Water Code, the first $3.05 million of the maintenance taxes collected under Chapter 252 and deposited in the general revenue fund.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1323 (S.B. 1436), Sec. 1, eff. September 1, 2007.
Acts 2019, 86th Leg., R.S., Ch. 947 (S.B. 7), Sec. 3.02, eff. June 13, 2019.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle C - Insurance Maintenance Taxes › Chapter 252 - Fire and Allied Lines Insurance › Section 252.001. Maintenance Tax Imposed

Sec. 252.001.  MAINTENANCE TAX IMPOSED.  A maintenance tax is imposed on each authorized insurer with gross premiums subject to taxation under Section 252.003.  The tax required by this chapter is in addition to other taxes imposed that are not in conflict with this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle C - Insurance Maintenance Taxes › Chapter 252 - Fire and Allied Lines Insurance › Section 252.002. Maximum Rate; Annual Adjustment

Sec. 252.002.  MAXIMUM RATE;  ANNUAL ADJUSTMENT.  (a)  The rate of assessment set by the commissioner may not exceed 1.25 percent of the gross premiums subject to taxation under Section 252.003.
(b)  The commissioner shall annually adjust the rate of assessment of the maintenance tax so that the tax imposed that year, together with any unexpended funds produced by the tax, produces the amount the commissioner determines is necessary to pay the expenses during the succeeding year of regulating all classes of insurance specified under:
(1)  Chapters 1807, 2001-2006, 2171, 6001, 6002, and 6003;
(2)  Subchapter C, Chapter 5;
(3)  Subchapter H, Chapter 544;
(4)  Subchapter D, Chapter 1806;
(5)  Section 403.002;
(6)  Sections 417.007, 417.008, and 417.009, Government Code; and
(7)  Chapter 2154, Occupations Code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2C.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle C - Insurance Maintenance Taxes › Chapter 252 - Fire and Allied Lines Insurance › Section 252.003. Premiums Subject to Taxation

Sec. 252.003.  PREMIUMS SUBJECT TO TAXATION.  An insurer shall pay maintenance taxes under this chapter on the correctly reported gross premiums from writing insurance in this state against loss or damage by:
(1)  bombardment;
(2)  civil war or commotion;
(3)  cyclone;
(4)  earthquake;
(5)  excess or deficiency of moisture;
(6)  explosion as defined by Section 2002.006(b);
(7)  fire;
(8)  flood;
(9)  frost and freeze;
(10)  hail, including loss by hail on farm crops;
(11)  insurrection;
(12)  invasion;
(13)  lightning;
(14)  military or usurped power;
(15)  an order of a civil authority made to prevent the spread of a conflagration, epidemic, or catastrophe;
(16)  rain;
(17)  riot;
(18)  the rising of the waters of the ocean or its tributaries;
(19)  smoke or smudge;
(20)  strike or lockout;
(21)  tornado;
(22)  vandalism or malicious mischief;
(23)  volcanic eruption;
(24)  water or other fluid or substance resulting from the breakage or leakage of sprinklers, pumps, or other apparatus erected for extinguishing fires, water pipes, or other conduits or containers;
(25)  weather or climatic conditions;
(26)  windstorm;
(27)  an event covered under a home warranty insurance policy; or
(28)  an event covered under an inland marine insurance policy.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2C.002, eff. April 1, 2009.
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 12, eff. June 15, 2007.
Reenacted by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 14.009, eff. September 1, 2009.