Texas Insurance Code Title 3, Chapter 228 - Premium Tax Credit For Certain Investments
SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 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...
SUBCHAPTER B ADMINISTRATION AND PROMOTION
- Texas Section 228.002 - Definition Of Affiliate
In this chapter, "affiliate" of another person means: (1) a person that is an affiliate for purposes of Section 823.003; (2) a person that directly...
- Texas Section 228.051 - Administration By Comptroller
The comptroller shall administer this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
- Texas Section 228.052 - Rules; Forms
The comptroller shall adopt rules and forms as necessary to implement this chapter, including rules that: (1) establish the application procedures for certified capital companies;...
- Texas Section 228.053 - Report To Legislature
(a) The comptroller shall prepare a biennial report concerning the results of the implementation of this chapter. The report must include: (1) the number of...
SUBCHAPTER C APPLICATION FOR AND GENERAL OPERATION OF CERTIFIED CAPITAL COMPANIES
- Texas Section 228.054 - Promotion Of Program
The Texas Economic Development and Tourism Office shall promote the program established under this chapter in the Texas Business and Community Economic Development Clearinghouse. Added...
- Texas Section 228.101 - Application For Certification
(a) An applicant for certification must file the application in the form prescribed by the comptroller. The application must be accompanied by a nonrefundable application...
- Texas Section 228.102 - Qualification
To qualify as a certified capital company: (1) the applicant must have, at the time of application for certification, an equity capitalization of at least...
- Texas Section 228.103 - Management By And Certain Ownership Interests Of Insurance Entities Prohibited
(a) An insurer, group of insurers, or other persons who may have state premium tax liability or the insurer's or person's affiliates may not directly...
- Texas Section 228.104 - Action On Application
(a) The comptroller shall: (1) review the application, organizational documents, and business history of each applicant; and (2) ensure that the applicant satisfies the requirements...
- Texas Section 228.105 - Continuation Of Certification
To continue to be certified, a certified capital company must make qualified investments according to the schedule established by Section 228.151. Added by Acts 2007,...
- Texas Section 228.106 - Reports To Comptroller; Audited Financial Statement
(a) Each certified capital company shall report to the comptroller as soon as practicable after the receipt of certified capital: (1) the name of each...
- Texas Section 228.107 - Renewal Fee; Late Fee; Exception
(a) Not later than January 31 of each year, each certified capital company shall pay a nonrefundable renewal fee of $5,000 to the comptroller. (b)...
SUBCHAPTER D INVESTMENT BY CERTIFIED CAPITAL COMPANIES
- Texas Section 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...
- Texas Section 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...
- Texas Section 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,...
- Texas Section 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...
- Texas Section 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;...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
SUBCHAPTER E QUALIFIED BUSINESS
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
SUBCHAPTER F PREMIUM TAX CREDIT
- Texas Section 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:...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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,...
- Texas Section 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...
- Texas Section 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...
SUBCHAPTER G ENFORCEMENT
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
SUBCHAPTER H RECAPTURE AND FORFEITURE OF PREMIUM TAX CREDITS
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
- Texas Section 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...
Last modified: September 28, 2016