1-1 AN ACT
1-2 relating to a franchise tax credit for wages paid to persons with
1-3 certain disabilities.
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 WAGES PAID TO PERSONS
1-8 WITH CERTAIN DISABILITIES
1-9 Sec. 171.851. ENTITLEMENT TO CREDIT. A corporation is
1-10 entitled to a credit in the amount and under the conditions and
1-11 limitations provided by this subchapter against the tax imposed
1-12 under this chapter.
1-13 Sec. 171.852. QUALIFICATION. A corporation qualifies for a
1-14 credit under this subchapter for each employee:
1-15 (1) originally hired for a position located or based
1-16 in this state on or after January 1, 2002;
1-17 (2) who, at the time of being hired, is an individual
1-18 eligible under 42 U.S.C. Section 1382, as amended, for supplemental
1-19 security income benefits on the basis of disability or blindness or
1-20 is a recipient of social security disability insurance benefits;
1-21 and
1-22 (3) who:
1-23 (A) remains continuously employed with the
1-24 corporation in a position located or based in this state for at
1-25 least six months;
2-1 (B) earns at least the minimum wage;
2-2 (C) works an average of at least 20 hours a
2-3 week; and
2-4 (D) receives the same benefits as the employer's
2-5 other workers.
2-6 Sec. 171.853. AMOUNT; LIMITATIONS. (a) The amount of the
2-7 credit is 10 percent of the wages paid by the corporation for each
2-8 qualified employee.
2-9 (b) A corporation may claim the credit only for wages paid
2-10 the qualified employee:
2-11 (1) for a position located or based in this state; and
2-12 (2) during the first two years of employment.
2-13 (c) The credit claimed for each privilege period may not
2-14 exceed 50 percent of the amount of net franchise tax due, after any
2-15 other applicable credits, for the privilege period.
2-16 Sec. 171.854. APPLICATION FOR CREDIT. (a) A corporation
2-17 must apply for a credit under this subchapter on or with the tax
2-18 report for the period for which the credit is claimed.
2-19 (b) The comptroller shall promulgate a form for the
2-20 application for the credit. A corporation must use the form in
2-21 applying for the credit.
2-22 Sec. 171.855. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
2-23 corporation may claim a credit under this subchapter for wages paid
2-24 during an accounting period only against the tax owed for the
2-25 corresponding privilege period.
2-26 Sec. 171.856. RULES. The comptroller shall adopt rules
3-1 necessary to implement this subchapter.
3-2 SECTION 2. This Act takes effect January 1, 2002, and
3-3 applies only to:
3-4 (1) a report originally due on or after that date; and
3-5 (2) wages paid on or after that date.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 63 passed the Senate on
April 26, 2001, by a viva-voce vote; and that the Senate concurred
in House amendment on May 25, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 63 passed the House, with
amendment, on May 23, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor