| (a) Controlled company. For franchise tax purposes controlled company has the same meaning as defined in the Insurance Code, Article 21.49-1. (b) Eligibility. A title insurance holding company that is subject to the Insurance Code, Article 21.49-1, and which controls one or more domestic title insurance companies that are subject to the tax on premiums under the Insurance Code, Article 9.59, is entitled to a credit against its franchise tax imposed by the Tax Code, Chapter 171. (c) Calculation of the credit. (1) The credit for each controlled domestic title company is computed by multiplying the amount of tax on premiums paid by that company in the most recent calendar year ending before the franchise tax report is due, by the percentage of ownership of the title insurance holding company in the controlled domestic title insurance company. (2) The percentage of ownership of a controlled domestic
title insurance company is determined as of the accounting year-end upon which taxable capital is based. (d) Limitations. (1) No portion of a credit may be used on a report for another period. (2) A corporation may not take credit for the same tax on premiums more than once. (e) Effective date. The tax credits provided by the Insurance Code, Article 9.59, apply to the reporting and calculation of franchise taxes for each initial, second, and regular annual period beginning on or after January 1, 1990.
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