Tex. Ins. Code 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 a certified investor that fully funds the purchase price of an equity interest in a certified capital company or a qualified debt instrument issued by the company.

(3)

“Certified capital company” means a partnership, corporation, or trust or limited liability company, whether organized on a profit or nonprofit basis, that:

(A)

has as the company’s primary business activity the investment of cash in qualified businesses; and

(B)

is certified as meeting the criteria of this chapter.

(4)

“Certified investor” means an insurer or other person that has state premium tax liability and that contributes certified capital pursuant to a premium tax credit allocation under this chapter.

(5)

“Early stage business” means a business described by Section 228.152 (Investment in Early Stage Business Required)(a).

(5-a)

“Low-income community” has the meaning assigned by Section 45D(e), Internal Revenue Code of 1986.

(6)

“Person” means an individual or entity, including a corporation, general or limited partnership, or trust or limited liability company.

(7)

“Premium tax credit allocation claim” means a claim for allocation of premium tax credits.

(7-a)

“Program One” means the program for allocation and investment of certified capital under this chapter before January 1, 2007.

(7-b)

“Program Two” means the program for allocation and investment of certified capital under this chapter on or after January 1, 2007.

(8)

“Qualified business” means a business described by Section 228.201 (Definition of Qualified Business).

(9)

“Qualified debt instrument” means a debt instrument issued by a certified capital company, at par value or a premium, that:

(A)

has an original maturity date that is a date on or after the fifth anniversary of the date of issuance;

(B)

has a repayment schedule that is not faster than a level principal amortization over five years; and

(C)

does not have interest, distribution, or payment features that are related to:
(i)
the profitability of the company; or
(ii)
the performance of the company’s investment portfolio.

(10)

“Qualified investment” means the investment of cash by a certified capital company in a qualified business for the purchase of any debt, debt participation, equity, or hybrid security of any nature or description, including a debt instrument or security that has the characteristics of debt but that provides for conversion into equity or equity participation instruments such as options or warrants.

(11)

“State premium tax liability” means:

(A)

any liability incurred by any person under Chapter 221 (Property and Casualty Insurance Premium Tax), 222 (Life, Health, and Accident Insurance Premium Tax), 223 (Title Insurance Premium Tax), 223A (Captive Insurance Premium Tax), or 224 (Reciprocal and Interinsurance Exchange Premium Tax); or

(B)

if the tax liability imposed under Chapter 221 (Property and Casualty Insurance Premium Tax), 222 (Life, Health, and Accident Insurance Premium Tax), 223 (Title Insurance Premium Tax), or 224 (Reciprocal and Interinsurance Exchange Premium Tax) is eliminated or reduced, any tax liability imposed on an insurer or other person that had premium tax liability under Subchapter A, Chapter 4, or Article 9.59 as those laws existed on January 1, 2003.

(12)

“Strategic investment business” means a business described by Section 228.153 (Investment in Strategic Investment Business Required)(a).
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 14.001(a), eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 4, eff. June 14, 2013.

Source: Section 228.001 — General Definitions, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­228.­htm#228.­001 (accessed Jun. 5, 2024).

228.001
General Definitions
228.002
Definition of Affiliate
228.051
Administration by Comptroller
228.052
Rules
228.053
Report to Legislature
228.054
Promotion of Program
228.101
Application for Certification
228.102
Qualification
228.103
Management by and Certain Ownership Interests of Insurance Entities Prohibited
228.104
Action on Application
228.105
Continuation of Certification
228.106
Reports to Comptroller
228.107
Renewal Fee
228.108
Offering Material Used by Certified Capital Company
228.151
Required Schedule of Investment
228.152
Investment in Early Stage Business Required
228.153
Investment in Strategic Investment Business Required
228.154
Certified Capital Not Invested in Qualified Investments
228.155
Computation of Amount of Investments
228.156
Limit on Qualified Investment
228.157
Distributions by Certified Capital Company
228.158
Repayment of Debt
228.201
Definition of Qualified Business
228.202
Relocation of Principal Business Operations
228.203
Evaluation of Business by Comptroller
228.204
Continuation of Classification as Qualified Business
228.251
Premium Tax Credit
228.252
Limit on Premium Tax Credit
228.253
Premium Tax Credit Allocation Claim Required
228.254
Total Limit on Premium Tax Credits
228.255
Allocation of Premium Tax Credit
228.256
Treatment of Credits and Capital
228.257
Transferability of Credit
228.258
Impact of Premium Tax Credit on Insurance Ratemaking
228.259
Retaliatory Tax
228.301
Annual Review by Comptroller
228.302
Decertification of Certified Capital Company
228.303
Administrative Penalty
228.351
Recapture and Forfeiture of Premium Tax Credit Following Decertification
228.352
Notice of Recapture and Forfeiture of Premium Tax Credit
228.353
Indemnity Agreements and Insurance Authorized

Accessed:
Jun. 5, 2024

§ 228.001’s source at texas​.gov