By: Haywood, et al. S.B. No. 58
A BILL TO BE ENTITLED
AN ACT
1-1 relating to incentives for an employer that establishes and
1-2 operates a day-care center for children of employees or purchases
1-3 child-care services for employees.
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 N to read as follows:
1-7 SUBCHAPTER N. TAX CREDIT FOR ESTABLISHING DAY-CARE CENTER
1-8 OR PURCHASING CHILD-CARE SERVICES
1-9 Sec. 171.701. DEFINITIONS. In this subchapter:
1-10 (1) "Day-care center" has the meaning assigned by
1-11 Section 42.002, Human Resources Code.
1-12 (2) "Family home" has the meaning assigned by Section
1-13 42.002, Human Resources Code.
1-14 Sec. 171.702. CREDIT. A corporation that meets the
1-15 eligibility requirements under this subchapter is entitled to a
1-16 credit in the amount allowed by this subchapter against the tax
1-17 imposed under this chapter.
1-18 Sec. 171.703. CREDIT FOR DAY-CARE CENTER AND PURCHASED CHILD
1-19 CARE. (a) A corporation may claim a credit under this subchapter
1-20 only for a qualifying expenditure relating to:
1-21 (1) the establishment and operation of a day-care
1-22 center primarily to provide care for the children of employees of
1-23 the corporation or of the corporation and one or more other
1-24 entities sharing the costs of establishing and operating the
2-1 center; or
2-2 (2) the purchase of child-care services that are
2-3 actually provided to children of employees of the corporation at a:
2-4 (A) day-care center; or
2-5 (B) family home that is registered or listed
2-6 with the Department of Protective and Regulatory Services under
2-7 Chapter 42, Human Resources Code.
2-8 (b) A qualifying expenditure includes an expenditure for:
2-9 (1) planning the day-care center;
2-10 (2) preparing a site to be used for the day-care
2-11 center;
2-12 (3) constructing the day-care center;
2-13 (4) renovating or remodeling a structure to be used
2-14 for the day-care center;
2-15 (5) purchasing equipment necessary in the use of the
2-16 day-care center and installed for permanent use in or immediately
2-17 adjacent to the day-care center, including kitchen appliances and
2-18 other food preparation equipment;
2-19 (6) expanding the day-care center;
2-20 (7) maintaining and operating the day-care center,
2-21 including paying direct administration and staff costs; or
2-22 (8) purchasing all or part of child-care services that
2-23 are actually provided to children of employees of the corporation
2-24 at a day-care center or registered or listed family home.
2-25 (c) The amount of the credit is equal to the lesser of:
2-26 (1) $50,000;
3-1 (2) 50 percent of the corporation's qualifying
3-2 expenditures; or
3-3 (3) the amount of the limitation provided by Section
3-4 171.705(b).
3-5 (d) If a corporation shares in the cost of establishing and
3-6 operating a day-care center, the corporation is entitled to a
3-7 credit for the qualifying expenditures made by that corporation,
3-8 subject to the limitation prescribed by Subsection (c).
3-9 Sec. 171.704. APPLICATION FOR CREDIT. (a) A corporation
3-10 must apply for a credit under this subchapter on or with the tax
3-11 report for the period for which the credit is claimed.
3-12 (b) If the corporation is claiming a credit for a qualifying
3-13 expenditure for purchasing child-care services, the corporation
3-14 must include proof that the services were actually provided to
3-15 children of employees of the corporation at a day-care center or
3-16 registered or listed family home.
3-17 (c) The comptroller shall adopt a form for the application
3-18 for the credit. A corporation must use this form in applying for
3-19 the credit.
3-20 Sec. 171.705. PERIOD FOR WHICH CREDIT MAY BE CLAIMED.
3-21 (a) A corporation may claim a credit under this subchapter for
3-22 qualifying expenditures made during an accounting period only
3-23 against the tax owed for the corresponding reporting period.
3-24 (b) A corporation may not claim a credit in an amount that
3-25 exceeds 90 percent of the amount of tax due for the report.
3-26 Sec. 171.706. ASSIGNMENT PROHIBITED. A corporation may not
4-1 convey, assign, or transfer the credit allowed under this
4-2 subchapter to another entity unless all of the assets of the
4-3 corporation are conveyed, assigned, or transferred in the same
4-4 transaction.
4-5 SECTION 2. A corporation may claim the credit under
4-6 Subchapter N, Chapter 171, Tax Code, as added by this Act, only:
4-7 (1) for a qualifying expenditure made on or after the
4-8 effective date of this Act; and
4-9 (2) on a franchise tax report due under Chapter 171,
4-10 Tax Code, on or after January 1, 2000.
4-11 SECTION 3. The importance of this legislation and the
4-12 crowded condition of the calendars in both houses create an
4-13 emergency and an imperative public necessity that the
4-14 constitutional rule requiring bills to be read on three several
4-15 days in each house be suspended, and this rule is hereby suspended,
4-16 and that this Act take effect and be in force from and after its
4-17 passage, and it is so enacted.