By Dutton                                             H.B. No. 1067
       74R4343 KKA-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the creation of a franchise tax credit for a
    1-3  corporation that provides a loaned teacher to a school district.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter A, Chapter 171, Tax Code, is amended
    1-6  by adding Section 171.003 to read as follows:
    1-7        Sec. 171.003.  LOANED TEACHER CREDIT.  (a)  A corporation
    1-8  that provides an employee of the corporation to a school district
    1-9  as a loaned teacher under Section 13.914, Education Code, is
   1-10  entitled to a credit to be applied against the tax imposed under
   1-11  this chapter in an amount equal to:
   1-12              (1)  one-half of the amount of the compensation paid by
   1-13  the corporation to the loaned teacher for services performed for
   1-14  the school district; and
   1-15              (2)  one-half of any expenses incurred by the
   1-16  corporation in providing the loaned teacher, including the costs of
   1-17  insurance covering the corporation for any liability that might
   1-18  arise from the activities of the loaned teacher performed in the
   1-19  scope of teaching duties.
   1-20        (b)  The credit authorized by this section may be applied
   1-21  against the tax on net taxable earned surplus due for a reporting
   1-22  period occurring after the completion of the loaned teacher's
   1-23  duties for the school district as provided by the comptroller's
   1-24  rules.
    2-1        (c)  The credit authorized by this section is nontransferable
    2-2  and may not exceed the amount of the tax on net taxable earned
    2-3  surplus due under this chapter for the period for which the credit
    2-4  may be claimed.
    2-5        (d)  A corporation must provide the comptroller with
    2-6  information as requested by the comptroller to determine the
    2-7  validity of the credit under this section.
    2-8        SECTION 2.  The credit authorized by Section 171.003, Tax
    2-9  Code, as added by this Act, applies only to compensation and
   2-10  expenses paid by a corporation on or after the effective date of
   2-11  this Act.
   2-12        SECTION 3.  The importance of this legislation and the
   2-13  crowded condition of the calendars in both houses create an
   2-14  emergency and an imperative public necessity that the
   2-15  constitutional rule requiring bills to be read on three several
   2-16  days in each house be suspended, and this rule is hereby suspended,
   2-17  and that this Act take effect and be in force from and after its
   2-18  passage, and it is so enacted.