By: Moncrief S.B. No. 783 A BILL TO BE ENTITLED AN ACT 1-1 relating to a franchise tax credit for wages paid to persons with 1-2 certain disabilities. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 171, Tax Code, is amended by adding 1-5 Subchapter P to read as follows: 1-6 SUBCHAPTER P. TAX CREDIT FOR WAGES PAID TO PERSONS 1-7 WITH CERTAIN DISABILITIES 1-8 Sec. 171.751. ENTITLEMENT TO CREDIT. A corporation is 1-9 entitled to a credit in the amount and under the conditions and 1-10 limitations provided by this subchapter against the tax imposed 1-11 under this chapter. 1-12 Sec. 171.752. QUALIFICATION. A corporation qualifies for a 1-13 credit under this subchapter for each employee: 1-14 (1) originally hired on or after January 1, 2000; 1-15 (2) who, at the time of being hired, is an individual 1-16 eligible under 42 U.S.C. Section 1382 and its subsequent amendments 1-17 for supplemental security income benefits on the basis of 1-18 disability or blindness or is a recipient of social security 1-19 disability insurance benefits; and 1-20 (3) who: 1-21 (A) remains continuously employed with the 1-22 corporation for at least six months; 1-23 (B) earns at least the minimum wage; 1-24 (C) works an average of at least 20 hours a 2-1 week; and 2-2 (D) receives the same benefits as the employer's 2-3 other workers. 2-4 Sec. 171.753. AMOUNT; LIMITATIONS. (a) The amount of the 2-5 credit is 10 percent of the wages paid by the corporation for each 2-6 qualified employee. 2-7 (b) A corporation may claim the credit only for wages paid 2-8 the qualified employee during the first two years of employment. 2-9 (c) The credit claimed for each privilege period may not 2-10 exceed 50 percent of the amount of net franchise tax due, after any 2-11 other applicable credits, for the privilege period. 2-12 Sec. 171.754. APPLICATION FOR CREDIT. (a) A corporation 2-13 must apply for a credit under this subchapter on or with the tax 2-14 report for the period for which the credit is claimed. 2-15 (b) The comptroller shall promulgate a form for the 2-16 application for the credit. A corporation must use this form in 2-17 applying for the credit. 2-18 Sec. 171.755. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A 2-19 corporation may claim a credit under this subchapter for wages paid 2-20 during an accounting period only against the tax owed for the 2-21 corresponding privilege period. 2-22 Sec. 171.756. RULES. The comptroller shall adopt rules 2-23 necessary to implement this subchapter. 2-24 SECTION 2. This Act takes effect January 1, 2000, and 2-25 applies only to: 2-26 (1) a report originally due on or after that date; and 3-1 (2) wages paid on or after that date. 3-2 SECTION 3. The importance of this legislation and the 3-3 crowded condition of the calendars in both houses create an 3-4 emergency and an imperative public necessity that the 3-5 constitutional rule requiring bills to be read on three several 3-6 days in each house be suspended, and this rule is hereby suspended.