78R4162 DAK-D

By:  Eissler                                                      H.B. No. 1438



A BILL TO BE ENTITLED

AN ACT

relating to franchise tax credits for certain investments.                    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 171.752(a), Tax Code, is amended to read 
as follows:     
	(a)  A corporation is eligible for a credit against the tax 
imposed under this chapter if the corporation:
		(1)  is a qualified business as defined in Section 
171.751;                 
		(2)  creates a minimum of three [10] qualifying jobs; 
and
		(3)  pays an average weekly wage, for the year in which 
credits are claimed, of at least 110 percent of the county average 
weekly wage for the county where the qualifying jobs are located.
	SECTION 2.  Section 171.802(b), Tax Code, is amended to read 
as follows:     
	(b)  To qualify for the credit authorized under this 
subchapter, a qualified business must:
		(1)  pay an average weekly wage, at the location with 
respect to which the credit is claimed, that is at least 110 percent 
of the county average weekly wage;
		(2)  offer coverage to all full-time employees at the 
location with respect to which the credit is claimed by a group 
health benefit plan, as defined by Section 171.751, for which the 
business pays at least 80 percent of the premiums or other charges 
assessed under the plan for the employees; and
		(3)  make a minimum $10,000 [$500,000] qualified 
capital investment.
	SECTION 3.  Section 171.811, Tax Code, is repealed.                            
	SECTION 4.  (a)  This Act takes effect January 1, 2004.                        
	(b)  A corporation that may claim a credit as a result of the 
change in law made by this Act may claim the credit only for 
expenses and payments incurred, qualified investments or 
expenditures made, or new jobs created on or after the effective 
date of this Act.
	(c)  The change in law made by this Act does not affect taxes 
imposed before the effective date of this Act, and the law in effect 
before the effective date of this Act is continued in effect for 
purposes of the liability for and collection of those taxes.