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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 31 – Tax Abatements
Sample (Illustrative, may not tie to exhibits)

Sample Agency enters into franchise tax abatement agreements with businesses under the state Tax Credit for Certified Rehabilitation of Certified Historic Structures. Under the state statute, the state may grant franchise tax abatements up to 25 percent of a business’ costs to rehabilitate a historic structure for the purpose of maintaining historic structures within the state. The abatements may be granted to any business rehabbing a structure within the state and receiving historic certification from the Texas Historical Commission. Once these credits are received, taxpayers may sell the credit to other taxpayers within the state.

For the fiscal year ended August 31, 20CY, Sample Agency abated taxes totaling $36M under this program — including the following tax abatement agreements that each exceeded 10 percent of the total amount abated and claimed:

  • A 17 percent franchise tax abatement to a telecommunications reseller.
    The abatement amounted to $6M.
  • A 13 percent franchise tax abatement to a management company.
    The abatement amounted to $4.76M.
  • A 12 percent franchise tax abatement to a supermarket/grocery store chain.
    The abatement amounted to $4.2M.
Glenn Hegar
Texas Comptroller of Public Accounts
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