Amend CSHB 3 (Senate committee printing) by inserting 
SECTION 4.471 (page 41, between lines 1 and 2) to read as follows:
	SECTION 4.471.  Chapter 171, Tax Code, is amended by adding 
Subchapter X to read as follows:
	SUBCHAPTER X.  TAX CREDIT FOR MANUFACTURING JOBS
	Sec. 171.941.  DEFINITIONS.  In this subchapter:                        
		(1)  "Compensation" means the compensation that is 
reported by the employer in Box 1 on the employee's federal form 
W-2.
		(2)  "Full-time employee" means an employee that works 
at least 1,800 hours of work a year.
		(3)  "Manufacturing" means an establishment primarily 
engaged in activities described in categories 2011-3999 of the 1987 
Standard Industrial Classification Manual published by the federal 
Office of Management and Budget.
		(4)  "Qualifying job" means a job in manufacturing.                    
	Sec. 171.942.  ENTITLEMENT TO CREDIT.  A taxable entity is 
entitled to a credit in the amount and under the conditions and 
limitations provided by this subchapter against the tax imposed 
under this chapter.
	Sec. 171.943.  AMOUNT OF CREDIT.  A taxable entity is 
entitled to a credit under this chapter in an amount equal to:
		(1)  one percent of the first $30,000 in compensation 
paid to each full-time employee with a qualifying job during the 
period on which the tax is based; and
		(2)  for each employee with a qualifying job during the 
period on which the tax is based that is not a full-time employee, 
an amount computed by:
			(A)  determining a fraction, the numerator of 
which is the number of hours the employee is required to work a year 
and the denominator of which is 1,800;
			(B)  multiplying the fraction determined under 
Subdivision (A) by one percent; and
			(C)  multiplying the number determined under 
Subdivision (B) by the first $30,000 in compensation paid to the 
employee.
	Sec. 171.944.  LIMITATIONS.  (a)  A taxable entity may claim 
the credit only for compensation paid an employee for a position 
located or based in this state.
	(b)  The total credit claimed under this subchapter may not 
exceed the amount of tax due for the report.
	(c)  A taxable entity may not carry a credit forward or 
backward to apply the credit to another year's report.
	Sec. 171.945.  APPLICATION FOR CREDIT.  (a)  A taxable entity 
must apply for a credit under this subchapter on or with the tax 
report for the period for which the credit is claimed.
	(b)  The comptroller shall promulgate a form for the 
application for the credit.  A taxable entity must use the form in 
applying for the credit.
	Sec. 171.946.  PERIOD FOR WHICH CREDIT MAY BE CLAIMED.  A 
taxable entity may claim a credit under this subchapter for 
compensation paid during an accounting period only against the tax 
owed for the corresponding privilege period.