Tex. Gov't Code Section 1372.062
Priority Classifications of Carryforward Designations

(a)

The board shall:

(1)

designate amounts as carryforward in accordance with the system of priority classifications specified in Sections 1372.063-1372.068; and

(2)

in each classification, make the designations in order of the application for those designations.

(b)

Notwithstanding Subsection (a), the board shall designate in compliance with the requirements of Section 146(f), Internal Revenue Code of 1986, a carryforward relating to an issuer’s written election under Section 1372.042 (Deadline for Closing on Bonds by Issuer)(c) according to the category of bonds to which the reservation subject to the carryforward relates.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1367, Sec. 10.10, eff. Sept. 1, 2001.

Sec. 1372.063. PRIORITY 1 CARRYFORWARD CLASSIFICATION. The priority 1 carryforward classification applies to:

(1)

an issuer of a state-voted issue; and

(2)

a state agency, other than an issuer of a state-voted issue, that applies for a carryforward designation for a project that:

(A)

is described by Section 1372.067(a)(2); and

(B)

the Texas Economic Development and Tourism Office determines meets the governor’s criteria for funding from the Texas Enterprise Fund.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 991 (S.B. 1332), Sec. 9, eff. September 1, 2007.

Sec. 1372.064. PRIORITY 2 CARRYFORWARD CLASSIFICATION. The priority 2 carryforward classification applies to an issuer of bonds approved by the voters of a political subdivision of this state if:

(1)

the bonds will be private activity bonds for which an allocation will be required for the bonds to be tax exempt under the Internal Revenue Code; or

(2)

the excess private use of a governmental bond will require allocation so that the bond may retain its tax exempt status under the Internal Revenue Code.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Sec. 1372.065. PRIORITY 3 CARRYFORWARD CLASSIFICATION. The priority 3 carryforward classification applies to:

(1)

a state agency, other than an issuer of a state-voted issue; and

(2)

a political subdivision whose board of directors holds office under Section 30a, Article XVI, Texas Constitution.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Sec. 1372.066. PRIORITY 4 CARRYFORWARD CLASSIFICATION. (a) The priority 4 carryforward classification applies to any political subdivision:

(1)

that is authorized to issue bonds; and

(2)

to which priority carryforward classifications 1-3 do not apply.

(b)

A project that is the subject of an application for a priority 4 carryforward classification must be owned by a governmental unit in accordance with applicable provisions of the Internal Revenue Code.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Sec. 1372.067. PRIORITY 5 CARRYFORWARD CLASSIFICATION. (a) The priority 5 carryforward classification applies to an issuer that:

(1)

was created to act on behalf of this state or one or more political subdivisions of this state; and

(2)

is applying for carryforward for a project:

(A)

for which there has been an inducement resolution or other comparable preliminary approval; and

(B)

with respect to which:

(i)

a binding contract to incur significant expenditures for construction, reconstruction, or rehabilitation was entered into before submission of the application;

(ii)

significant expenditures for construction, reconstruction, or rehabilitation were readily identifiable with and necessary to carry out a binding contract for the supply of property or services or the sale of output; or

(iii)

significant expenditures were paid or incurred before submission of the application.

(b)

In this section, “significant expenditures” means expenditures that are greater than the lesser of:

(1)

$1 million; or

(2)

10 percent of the reasonably anticipated cost of the project.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Sec. 1372.068. PRIORITY 6 CARRYFORWARD CLASSIFICATION. The priority 6 carryforward classification applies to an issuer that:

(1)

was created to act on behalf of this state or one or more political subdivisions of this state; and

(2)

is applying for carryforward for a project that is not eligible for another priority carryforward classification.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Source: Section 1372.062 — Priority Classifications of Carryforward Designations, (accessed Feb. 26, 2025).

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Tex. Gov't Code Section 1372.062 Priority Classifications of Carryforward Designations

(a)

(1)

(2)

(b)

(1)

(2)

(A)

(B)

(1)

(2)

(1)

(2)

(1)

(2)

(b)

(1)

(2)

(A)

(B)

(i)

(ii)

(iii)

(b)

(1)

(2)

(1)

(2)

Tex. Gov't Code Section 1372.062
Priority Classifications of Carryforward Designations