Exemption to Increase in BPT

(a)The increase in the Business Privilege Tax

(BPT)set forth in Subsections 26202(a), (c), (d), (e), (f), (g), (h), (i), and

(j)of this Chapter effective April 1, 2003, shall not apply to income generated from the following contracts:

(1)Contracts entered into or awarded prior to February 28, 2003, which were based upon bid awards made prior to February 28, 2003, that cannot be amended or renegotiated to accommodate the increase in BPT; and

(2)Contracts entered into or awarded after February 28, 2003, which were based upon bids or proposals submitted prior to February 28, 2003, that cannot be amended or renegotiated to accommodate the increase in BPT.

(b)For purposes of this Section, each taxpayer claiming an exemption under this Section shall provide to the Department of Revenue and Taxation a copy of its bid contract or award under which any claimed CH. 26 BUSINESS PRIVILEGE TAX LAW exempt income was generated and shall segregate in their tax filings, relative to the Business Privilege Tax, said exempt income from any other income generated by the taxpayer.