Tex. Tax Code § 151.346 · Subchapter H. EXEMPTIONS
INTERCORPORATE SERVICES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) There are exempt from the taxes imposed by this chapter service transactions among affiliated entities, at least one of which is a corporation, that report their income to the Internal Revenue Service on a single consolidated return for the tax year in which the transaction occurs.
(b) For purposes of this section, "affiliated entity" includes an entity that would be classified as a member of an affiliated group under 26 U.S.C. Section 1504 but for the exclusions provided by that section.
(c) An exemption authorized by this section does not apply to a service that would have been taxable under this chapter as it existed on September 1, 1987.
(d) Services that are exempt under this section may not be purchased for resale by the providing company.
(e) Tangible personal property that is transferred as an integral part of a service exempted under this section may not be purchased for resale by the providing company.
Notes and commentary — not statutory text
History
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 29. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 17, eff. Sept. 1, 1991.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm
- Text hash
- sha256 c98196ef300563182af76981071c8422fb41633dcde716197461cce5bf141d02
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.