By Shields H.B. No. 1808
74R5757 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a franchise tax credit for payments made to certain
1-3 medical savings accounts.
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 171.0025 to read as follows:
1-7 Sec. 171.0025. CREDIT FOR PAYMENTS TO CERTAIN MEDICAL
1-8 SAVINGS ACCOUNTS. (a) If other law authorizes a corporation to
1-9 establish and make payments to a medical savings account for the
1-10 benefit of a corporation employee, the corporation may take a
1-11 credit in an amount equal to the payment on the tax due under this
1-12 chapter.
1-13 (b) The corporation may claim the credit on the first report
1-14 due covering the business period during which the payment was made.
1-15 (c) A corporation may not claim on a report a credit in an
1-16 amount that exceeds the amount of the tax due for that report. A
1-17 corporation shall apply unused credit each report toward the tax
1-18 due under this chapter until the credit is used.
1-19 (d) A corporation may not convey, assign, or transfer the
1-20 credit allowed under this section to another entity unless all of
1-21 the assets of the corporation are conveyed, assigned, or
1-22 transferred in the same transaction.
1-23 SECTION 2. Section 171.2022, Tax Code, is amended to read as
1-24 follows:
2-1 Sec. 171.2022. EXEMPTION FROM REPORTING REQUIREMENTS. (a)
2-2 A corporation that does not owe any tax under this chapter for a
2-3 <any> period is not required to file a report under Section 171.201
2-4 or<,> 171.202<, or 171.2021>. The exemption applies only to a
2-5 period for which no tax is due.
2-6 (b) The reporting exemption does not apply to a corporation
2-7 that, for the reporting period, claims a credit under Section
2-8 171.0021 or 171.0025.
2-9 SECTION 3. This Act applies to reports originally due on or
2-10 after January 1, 1996.
2-11 SECTION 4. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended.