By Allen H.B. No. 891 74R2204 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to work programs for certain persons committed to a 1-3 facility of the Texas Youth Commission. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 171, Tax Code, is amended by adding 1-6 Subchapter M to read as follows: 1-7 SUBCHAPTER M. TAX CREDIT FOR WAGES PAID TO CERTAIN 1-8 CHILDREN COMMITTED TO THE TEXAS YOUTH COMMISSION 1-9 Sec. 171.681. DEFINITIONS. In this subchapter: 1-10 (1) "Commission" means the Texas Youth Commission. 1-11 (2) "Eligible child" means a person who: 1-12 (A) is committed to the commission under Title 1-13 3, Family Code, other than a commitment under Section 54.04(d)(3), 1-14 Family Code; and 1-15 (B) resides at a facility of the commission. 1-16 Sec. 171.682. CREDIT. A corporation that meets the 1-17 eligibility requirements under this subchapter is entitled to a 1-18 credit in the amount allowed by this subchapter against the tax 1-19 imposed under this chapter. 1-20 Sec. 171.683. CREDIT FOR WAGES PAID TO ELIGIBLE CHILD. (a) 1-21 The amount of the credit for wages paid by a corporation to an 1-22 eligible child is equal to 10 percent of the wages paid to the 1-23 child or to the commission for the benefit of the child. 1-24 (b) A corporation is eligible for the credit under this 2-1 section only if the corporation files on or before the due date of 2-2 its franchise tax report for the privilege period for which the 2-3 credit is claimed a written certification issued by the commission 2-4 stating the amount of the wages that the corporation paid to an 2-5 eligible child or to the commission for the benefit of the child 2-6 during: 2-7 (1) the privilege period; and 2-8 (2) not more than six months of the preceding 2-9 privilege period for wages for which a credit has not previously 2-10 been claimed. 2-11 (c) A corporation is eligible for the credit under this 2-12 section only if the eligible child to whom or for whose benefit it 2-13 pays wages has been continuously employed by the corporation for 2-14 not less than six months. 2-15 Sec. 171.684. CREDIT FOR WAGES PAID TO EMPLOYEE WHO WAS AN 2-16 ELIGIBLE CHILD. (a) The amount of the credit for wages paid by a 2-17 corporation to an employee who was first employed by the 2-18 corporation when the employee was an eligible child is equal to 10 2-19 percent of the wages paid the employee. 2-20 (b) A corporation is eligible for the credit under this 2-21 section only if: 2-22 (1) the employee who was formerly an eligible child 2-23 was continuously employed for not less than six months while an 2-24 eligible child and has been continuously employed by the 2-25 corporation for at least one year after the date that the employee 2-26 was released from commitment to the commission or released under 2-27 supervision by the commission; and 3-1 (2) the nature of the employment is substantially 3-2 similar to the employment the employee had with the corporation 3-3 when the employee was an eligible child or the employment requires 3-4 more skills or provides greater opportunities for the employee. 3-5 (c) A corporation may claim a credit under this section only 3-6 for: 3-7 (1) wages paid an employee after the employee has been 3-8 employed by the corporation for more than one year after the 3-9 earlier of the date of the employee's release from commitment to 3-10 the commission or release under supervision by the commission; and 3-11 (2) wages paid the employee for not longer than one 3-12 year. 3-13 Sec. 171.685. LIMITATION. The total credits claimed under 3-14 this subchapter for a privilege period may not exceed 50 percent of 3-15 the amount of net franchise tax due for the privilege period after 3-16 any other applicable tax credits. 3-17 Sec. 171.686. APPLICATION FOR CREDIT. (a) A corporation 3-18 must apply for a credit under this subchapter on or with the tax 3-19 report for the period for which the credit is claimed. 3-20 (b) The comptroller shall promulgate a form for the 3-21 application for the credit. A corporation must use this form in 3-22 applying for the credit. 3-23 Sec. 171.687. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A 3-24 corporation may claim a credit under this subchapter for wages paid 3-25 during an accounting period only against the tax owed for the 3-26 corresponding privilege period. 3-27 SECTION 2. Subchapter C, Chapter 61, Human Resources Code, 4-1 is amended by adding Section 61.0375 to read as follows: 4-2 Sec. 61.0375. EMPLOYMENT PROGRAMS; CERTIFICATION FOR 4-3 FRANCHISE TAX CREDIT. (a) The commission may allow a corporation 4-4 to employ a child committed to the commission and residing at a 4-5 facility of the commission. 4-6 (b) Employment of a child by a person must comply with state 4-7 and federal law. 4-8 (c) The commission shall prepare and issue any certification 4-9 required under Subchapter M, Chapter 171, Tax Code, for a 4-10 corporation to establish eligibility for the franchise tax credit 4-11 authorized by that subchapter. 4-12 SECTION 3. A corporation may claim the credit under 4-13 Subchapter M, Chapter 171, Tax Code, as added by this Act, only for 4-14 any wages paid or incurred on or after the effective date of this 4-15 Act and only a franchise tax report due under Chapter 171, Tax 4-16 Code, on or after January 1, 1996. 4-17 SECTION 4. The importance of this legislation and the 4-18 crowded condition of the calendars in both houses create an 4-19 emergency and an imperative public necessity that the 4-20 constitutional rule requiring bills to be read on three several 4-21 days in each house be suspended, and this rule is hereby suspended.