By King of Parker H.B. No. 87
77R817 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a franchise tax credit for expenditures made toward the
1-3 cost of transportation provided to certain welfare recipients.
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 S to read as follows:
1-7 SUBCHAPTER S. TAX CREDIT FOR EXPENDITURES FOR TRANSPORTATION
1-8 SERVICES PROVIDED TO CERTAIN WELFARE RECIPIENTS
1-9 Sec. 171.851. ELIGIBILITY. A corporation is eligible for a
1-10 credit against the tax imposed under this chapter in the amount and
1-11 under the conditions and limitations provided by this subchapter.
1-12 Sec. 171.852. CREDIT FOR COST OF TRANSPORTATION SERVICES.
1-13 (a) A corporation may claim a credit under this subchapter only
1-14 for an expenditure made toward the cost of transportation services
1-15 described by Subsection (b) provided to a person who:
1-16 (1) is a recipient of:
1-17 (A) financial assistance under Chapter 31, Human
1-18 Resources Code; or
1-19 (B) nutritional assistance under Chapter 33,
1-20 Human Resources Code; and
1-21 (2) is participating in:
1-22 (A) a work or employment activity under Chapter
1-23 31, Human Resources Code; or
1-24 (B) the food stamp employment and training
2-1 program.
2-2 (b) A corporation may claim a credit under this subchapter
2-3 only for expenditures made toward the cost of transportation
2-4 services to and from the location of the:
2-5 (1) work, employment, or training activity or program;
2-6 or
2-7 (2) provider of any child care services necessary for
2-8 a person described by Subsection (a) to participate in the work,
2-9 employment, or training activity or program.
2-10 (c) A corporation may claim a credit under this subchapter
2-11 regardless of whether the corporation:
2-12 (1) provides or pays for the transportation services
2-13 directly; or
2-14 (2) donates money to a nonprofit entity that uses the
2-15 money only to provide or pay for the transportation services.
2-16 Sec. 171.853. LIMITATIONS. (a) The total credit under this
2-17 subchapter for a report may not exceed 50 percent of the amount of
2-18 net franchise tax due for the privilege period after any other
2-19 applicable tax credits.
2-20 (b) A corporation may claim a credit under this subchapter
2-21 for an expenditure made during an accounting period only against
2-22 the tax owed for the corresponding reporting period.
2-23 Sec. 171.854. APPLICATION FOR CREDIT. (a) A corporation
2-24 must apply for a credit under this subchapter on or with the tax
2-25 report for the period for which the credit is claimed.
2-26 (b) The corporation must include with the application a copy
2-27 of a written certification from the Texas Workforce Commission that
3-1 the person receiving the transportation services is a person
3-2 described by Section 171.852(a).
3-3 (c) The comptroller shall adopt a form for the application
3-4 for the credit. A corporation must use this form in applying for
3-5 the credit.
3-6 Sec. 171.855. ASSIGNMENT PROHIBITED. A corporation may not
3-7 convey, assign, or transfer the credit allowed under this
3-8 subchapter to another entity unless all of the assets of the
3-9 corporation are conveyed, assigned, or transferred in the same
3-10 transaction.
3-11 SECTION 2. (a) This Act takes effect January 1, 2002, and
3-12 applies only to a report due on or after that date.
3-13 (b) A corporation may claim a credit under Subchapter S,
3-14 Chapter 171, Tax Code, as added by this Act, only for an
3-15 expenditure made on or after January 1, 2002.