SB 2606

relating to the franchise and insurance premium tax credit for the
certified rehabilitation of certified historic structures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 172.101(b), Tax Code, is amended by
adding Subdivision (4) to read as follows:
(4)  "Distressed area" means an area of land located
entirely in a census tract with:
(A)  a poverty rate equal to or greater than 40
(B)  a median family income of not more than 40
percent of the area median family income that is established by the
United States Department of Housing and Urban Development; or
(C)  an unemployment rate of at least 2.5 times
the national average unemployment rate.
SECTION 2.  Section 172.106, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
(a)  Except as provided by Subsection (a-1), the [The] total
amount of the credit under this chapter with respect to the
rehabilitation of a single certified historic structure that may be
claimed may not exceed 25 percent of the total eligible costs and
expenses incurred in the certified rehabilitation of the certified
(a-1)  The total amount of the credit under this chapter that
may be claimed with respect to the rehabilitation of a single
certified historic structure located in an area that is a
distressed area on the date the eligible costs and expenses are
incurred may not exceed 35 percent of those costs and expenses
incurred in the certified rehabilitation of the certified historic
SECTION 3.  The changes in law made by this Act apply only to
a tax report originally due on or after the effective date of this
SECTION 4.  This Act takes effect January 1, 2026.