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.