By Allen H.B. No. 2152
75R3918 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tax credits.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 ARTICLE 1. WAGES PAID TO AN INMATE OR FORMER INMATE
1-5 SECTION 1.01. Section 171.653(a), Tax Code, is amended to
1-6 read as follows:
1-7 (a) The amount of the credit for wages paid by a corporation
1-8 to an inmate is equal to the lesser of:
1-9 (1) 10 percent of [that portion of] the wages paid to
1-10 the inmate; or
1-11 (2) the amount that the department apportions to the
1-12 state under Section 497.004(b)(3), Government Code, as
1-13 reimbursement for the cost of the inmate's confinement.
1-14 SECTION 1.02. Section 171.654(a), Tax Code, is amended to
1-15 read as follows:
1-16 (a) The amount of the credit for wages paid by a corporation
1-17 to an employee who was employed by the corporation when the
1-18 employee was an inmate is equal to the lesser of:
1-19 (1) 10 percent of [that portion of] the wages paid to
1-20 the employee; or
1-21 (2) the amount that, were the employee still an
1-22 inmate, the department would apportion to the state under Section
1-23 497.004(b)(3), Government Code, as reimbursement for the cost of
1-24 the inmate's confinement.
2-1 SECTION 1.03. A corporation may claim the credit under
2-2 Subchapter L, Chapter 171, Tax Code, as amended by this article,
2-3 only for any wages paid or incurred on or after the effective date
2-4 of this article and only on a franchise tax report due under
2-5 Chapter 171, Tax Code, on or after January 1, 1998.
2-6 ARTICLE 2. WAGES PAID TO CERTAIN CHILDREN COMMITTED TO THE
2-7 TEXAS YOUTH COMMISSION
2-8 SECTION 2.01. Section 171.681(2), Tax Code, is amended to
2-9 read as follows:
2-10 (2) "Eligible child" means a person who:
2-11 (A) is committed to the commission under Title
2-12 3, Family Code[, other than a commitment under a determinate
2-13 sentence under Section 54.04(d)(3), 54.04(m), 54.05(f), Family
2-14 Code]; and
2-15 (B) resides at a facility of the commission.
2-16 SECTION 2.02. A corporation that has employed a child who,
2-17 before the effective date of this article, was not an eligible
2-18 child as defined by Section 171.681(2), Tax Code, but who, on or
2-19 after the effective date of this article is an eligible child as
2-20 defined by Section 171.681(2), as amended by this article, may
2-21 include, for the purposes of determining the corporation's
2-22 eligibility for the franchise tax credit under Subchapter M,
2-23 Chapter 171, Tax Code, the period during which the child was
2-24 employed. This section does not authorize a credit in an amount
2-25 that exceeds the amount that would have been authorized if the
2-26 child had been eligible before the effective date of this article.
2-27 The corporation may include employment for the purposes of this
3-1 section only for the privilege period, as described by Section
3-2 171.151, Tax Code, in which this article becomes effective.
3-3 ARTICLE 3. EMERGENCY
3-4 SECTION 3.01. The importance of this legislation and the
3-5 crowded condition of the calendars in both houses create an
3-6 emergency and an imperative public necessity that the
3-7 constitutional rule requiring bills to be read on three several
3-8 days in each house be suspended, and this rule is hereby suspended,
3-9 and that this Act take effect and be in force from and after its
3-10 passage, and it is so enacted.