By: Moncrief, et al. S.B. No. 63
A BILL TO BE ENTITLED
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 on or after January 1, 2002;
1-16 (2) who, at the time of being hired, is an individual
1-17 eligible under 42 U.S.C. Section 1382, as amended, for supplemental
1-18 security income benefits on the basis of disability or blindness or
1-19 is a recipient of social security disability insurance benefits;
1-20 and
1-21 (3) who:
1-22 (A) remains continuously employed with the
1-23 corporation for at least six months;
1-24 (B) earns at least the minimum wage;
1-25 (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. 171.853. 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. 171.854. 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 the form in
2-17 applying for the credit.
2-18 Sec. 171.855. 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. 171.856. RULES. The comptroller shall adopt rules
2-23 necessary to implement this subchapter.
2-24 SECTION 2. This Act takes effect January 1, 2002, 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 COMMITTEE AMENDMENT NO. 1
3-3 Amend S.B. No. 63 as follows:
3-4 (1) In SECTION 1 of the bill, in new Section 171.852(1), Tax
3-5 Code, between "hired" and "on" (senate engrossment, page 1, line
3-6 15), insert "for a position located or based in this state".
3-7 (2) In SECTION 1 of the bill, in new Section 171.852(3)(A),
3-8 Tax Code, between "corporation" and "for" (senate engrossment, page
3-9 1, line 23), insert "in a position located or based in this state".
3-10 (3) In SECTION 1 of the bill, strike new Section 171.853(b),
3-11 Tax Code (senate engrossment, page 2, lines 7-8), and substitute:
3-12 (b) A corporation may claim the credit only for wages paid
3-13 the qualified employee:
3-14 (1) for a position located or based in this state; and
3-15 (2) during the first two years of employment.
3-16 Hartnett