By West S.B. No. 1453 76R6696 CBH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a franchise tax credit that allows a parent to 1-3 volunteer at a child's school without loss of compensation. 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 OF ALLOWING PARENT TO VOLUNTEER 1-8 AT PUBLIC SCHOOL 1-9 Sec. 171.701. DEFINITION. In this section, "public school" 1-10 means a public elementary or secondary school, including an 1-11 open-enrollment charter school, a home-rule school district 1-12 school, and a school with a campus or campus program charter. 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 OF ALLOWING PARENT TO VOLUNTEER AT 1-18 PUBLIC SCHOOL. (a) A corporation may claim a credit under this 1-19 subchapter for wages paid or incurred by the corporation for an 1-20 employee who: 1-21 (1) performs during the workday volunteer services for 1-22 at least two days a semester at a public school attended by a child 1-23 of the employee; 1-24 (2) does not have accrued vacation leave, sick leave, 2-1 or other leave that the employee can use for that time; and 2-2 (3) the corporation allows to perform the volunteer 2-3 services without loss of compensation. 2-4 (b) The amount of the credit is equal to 50 percent of the 2-5 wages paid or incurred by the corporation for the employee for the 2-6 days on which the employee performs the volunteer services 2-7 described by Subsection (a). 2-8 Sec. 171.704. APPLICATION FOR CREDIT. (a) A corporation 2-9 must apply for a credit under this subchapter on or with the tax 2-10 report for the period for which the credit is claimed. 2-11 (b) The comptroller shall adopt a form for the application 2-12 for the credit. A corporation must use this form in applying for 2-13 the credit. 2-14 Sec. 171.705. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. (a) 2-15 A corporation may claim a credit under this subchapter for wages 2-16 paid or incurred during an accounting period only against the tax 2-17 owed for the corresponding reporting period. 2-18 (b) A corporation may not claim a credit in an amount that 2-19 exceeds the amount of tax due for the report. 2-20 Sec. 171.706. ASSIGNMENT PROHIBITED. A corporation may not 2-21 convey, assign, or transfer the credit allowed under this 2-22 subchapter to another entity unless all of the assets of the 2-23 corporation are conveyed, assigned, or transferred in the same 2-24 transaction. 2-25 SECTION 2. This Act takes effect January 1, 2000. A 2-26 corporation may claim a credit under Subchapter N, Chapter 171, Tax 2-27 Code, as added by this Act, only for wages paid or incurred on or 3-1 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.