By Haywood S.B. No. 58
76R210 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to incentives for an employer that establishes and
1-3 operates a day-care center for children of employees or purchases
1-4 child-care services for employees.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 171, Tax Code, is amended by adding
1-7 Subchapter N to read as follows:
1-8 SUBCHAPTER N. TAX CREDIT FOR ESTABLISHING DAY-CARE CENTER
1-9 OR PURCHASING CHILD-CARE SERVICES
1-10 Sec. 171.701. DEFINITION. In this subchapter, "day-care
1-11 center" has the meaning assigned by Section 42.002, Human Resources
1-12 Code.
1-13 Sec. 171.702. CREDIT. A corporation that meets the
1-14 eligibility requirements under this subchapter is entitled to a
1-15 credit in the amount allowed by this subchapter against the tax
1-16 imposed under this chapter.
1-17 Sec. 171.703. CREDIT FOR DAY-CARE CENTER AND PURCHASED CHILD
1-18 CARE. (a) A corporation may claim a credit under this subchapter
1-19 only for a qualifying expenditure relating to:
1-20 (1) the establishment and operation of a day-care
1-21 center primarily to provide care for the children of employees of
1-22 the corporation or of the corporation and one or more other
1-23 entities sharing the costs of establishing and operating the
1-24 center; or
2-1 (2) the purchase of child-care services that are
2-2 actually provided to children of employees of the corporation.
2-3 (b) A qualifying expenditure includes an expenditure for:
2-4 (1) planning the day-care center;
2-5 (2) preparing a site to be used for the day-care
2-6 center;
2-7 (3) constructing the day-care center;
2-8 (4) renovating or remodeling a structure to be used
2-9 for the day-care center;
2-10 (5) purchasing equipment necessary in the use of the
2-11 day-care center and installed for permanent use in or immediately
2-12 adjacent to the day-care center, including kitchen appliances and
2-13 other food preparation equipment;
2-14 (6) expanding the day-care center;
2-15 (7) maintaining and operating the day-care center,
2-16 including paying direct administration and staff costs; or
2-17 (8) purchasing all or part of child-care services that
2-18 are actually provided to children of employees of the corporation.
2-19 (c) The amount of the credit is equal to the lesser of:
2-20 (1) $50,000;
2-21 (2) 50 percent of the corporation's qualifying
2-22 expenditures; or
2-23 (3) the amount of the limitation provided by Section
2-24 171.705(b).
2-25 (d) If a corporation shares in the cost of establishing and
2-26 operating a day-care center, the corporation is entitled to a
2-27 credit for the qualifying expenditures made by that corporation,
3-1 subject to the limitation prescribed by Subsection (c).
3-2 Sec. 171.704. APPLICATION FOR CREDIT. (a) A corporation
3-3 must apply for a credit under this subchapter on or with the tax
3-4 report for the period for which the credit is claimed.
3-5 (b) If the corporation is claiming a credit for a qualifying
3-6 expenditure for purchasing child-care services, the corporation
3-7 must include proof that the services were actually provided to
3-8 children of employees of the corporation.
3-9 (c) The comptroller shall adopt a form for the application
3-10 for the credit. A corporation must use this form in applying for
3-11 the credit.
3-12 Sec. 171.705. PERIOD FOR WHICH CREDIT MAY BE CLAIMED.
3-13 (a) A corporation may claim a credit under this subchapter for
3-14 qualifying expenditures made during an accounting period only
3-15 against the tax owed for the corresponding reporting period.
3-16 (b) A corporation may not claim a credit in an amount that
3-17 exceeds 90 percent of the amount of tax due for the report.
3-18 Sec. 171.706. ASSIGNMENT PROHIBITED. A corporation may not
3-19 convey, assign, or transfer the credit allowed under this
3-20 subchapter to another entity unless all of the assets of the
3-21 corporation are conveyed, assigned, or transferred in the same
3-22 transaction.
3-23 SECTION 2. A corporation may claim the credit under
3-24 Subchapter N, Chapter 171, Tax Code, as added by this Act, only:
3-25 (1) for a qualifying expenditure made on or after the
3-26 effective date of this Act; and
3-27 (2) on a franchise tax report due under Chapter 171,
4-1 Tax Code, on or after January 1, 2000.
4-2 SECTION 3. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended,
4-7 and that this Act take effect and be in force from and after its
4-8 passage, and it is so enacted.