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.