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Texas Bill Would Create OZ Tax Credit, Tax Refund

Tuesday, February 26, 2019 - 9:45AM

Texas state Rep. Travis Clardy introduced a bill in the state House of Representatives that would create a franchise tax credit and sales and use tax refund for certain businesses that invest in opportunity zones (OZs). H.B. 2397 would create a 25 percent tax credit for expenses to remodel, rehabilitate or build a structure in an OZ; and to purchase equipment or machinery for a building in an OZ. The credit would require a minimum investment of $100,000. The legislation would also allow a one-time 25 percent tax refund for qualifying businesses for expenses involving building materials, labor and equipment for structures in OZs or $50,000, whichever is less. The legislation would take effect Jan. 1, 2020, but would apply to investments made after Sept. 1.

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