By: Blanco	S.B. No. 2606

	A BILL TO BE ENTITLED
	AN ACT
	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
	percent;
	(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
	follows:
	(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
	historic structure.
	(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
	structure.
	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
	Act.
	SECTION 4.  This Act takes effect January 1, 2026.