By Green H.B. No. 684
77R748 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a franchise tax credit for contributions to programs
1-3 for at-risk youth.
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 T to read as follows:
1-7 SUBCHAPTER T. TAX CREDIT FOR CONTRIBUTIONS TO PROGRAMS FOR
1-8 AT-RISK YOUTH
1-9 Sec. 171.871. DESCRIPTION OF LOCAL COMMUNITY. (a) The local
1-10 community of a corporation eligible for a credit under this
1-11 subchapter is, except as provided by Subsection (b):
1-12 (1) the municipality in which the headquarters of the
1-13 corporation is located; or
1-14 (2) if the headquarters of the corporation is not
1-15 located in a municipality, the county in which the corporation's
1-16 headquarters is located.
1-17 (b) A corporation with a facility that is not located in the
1-18 local community described by Subsection (a) may designate its
1-19 contribution as originating from that facility. The local
1-20 community of a corporation that makes this designation is:
1-21 (1) the municipality in which the designated facility
1-22 is located; or
1-23 (2) if the designated facility is not located in a
1-24 municipality, the county in which the designated facility is
2-1 located.
2-2 Sec. 171.872. ELIGIBILITY. A corporation is eligible for a
2-3 credit against the tax imposed under this chapter in the amount and
2-4 under the conditions and limitations provided by this subchapter.
2-5 Sec. 171.873. CONTRIBUTIONS ELIGIBLE FOR CREDIT. (a) A
2-6 corporation may claim a credit under this subchapter only for a
2-7 contribution to a program designated by its local community, as
2-8 described by Section 171.871, that provides services described by
2-9 Subsection (b) for:
2-10 (1) children in at-risk situations and the families of
2-11 those children as described by Subchapter D, Chapter 264, Family
2-12 Code; or
2-13 (2) children who qualify, under criteria developed by
2-14 the local community, as at-risk youth and the families of those
2-15 children.
2-16 (b) Services provided by a program described by Subsection
2-17 (a) may include only:
2-18 (1) services described by Section 264.302(f), Family
2-19 Code; and
2-20 (2) other services identified by the local community
2-21 relating to:
2-22 (A) the education, training, and career
2-23 development of at-risk youth; and
2-24 (B) the provision of community service by
2-25 at-risk youth.
2-26 Sec. 171.874. LIMITATIONS ON CREDIT. (a) Subject to the
2-27 limitations of this subchapter, the amount of the credit is equal
3-1 to the amount of the contribution made by the corporation.
3-2 (b) The total credit under this subchapter for a report may
3-3 not exceed 50 percent of the amount of net franchise tax due for
3-4 the privilege period after any other applicable tax credits.
3-5 (c) A corporation may claim a credit under this subchapter
3-6 for a contribution made during an accounting period only against
3-7 the tax owed for the corresponding reporting period.
3-8 Sec. 171.875. APPLICATION FOR CREDIT. (a) A corporation
3-9 must apply for a credit under this subchapter on or with the tax
3-10 report for the period for which the credit is claimed.
3-11 (b) The comptroller shall adopt a form for the application
3-12 for the credit. A corporation must use this form in applying for
3-13 the credit.
3-14 Sec. 171.876. ASSIGNMENT PROHIBITED. A corporation may not
3-15 convey, assign, or transfer the credit allowed under this
3-16 subchapter to another entity unless all of the assets of the
3-17 corporation are conveyed, assigned, or transferred in the same
3-18 transaction.
3-19 Sec. 171.877. LIMITATION ON USE OF QUALIFYING CONTRIBUTIONS.
3-20 A local community, as described by Section 171.871, that receives
3-21 contributions for which a corporation qualifies for a tax credit
3-22 under this subchapter may use those contributions only for the
3-23 program designated by the local community to provide services to
3-24 at-risk youth described by Section 171.873. The program may
3-25 provide services to at-risk youth who do not reside in the local
3-26 community.
3-27 SECTION 2. (a) This Act takes effect January 1, 2002, and
4-1 applies only to a report due on or after that date.
4-2 (b) A corporation may claim a credit under Subchapter T,
4-3 Chapter 171, Tax Code, as added by this Act, only for a
4-4 contribution made on or after January 1, 2002.