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Amend CSHB 3 (Senate committee printing) by inserting 
SECTION 4.472 (page 41, between lines 1 and 2) to read as follows:
	SECTION 4.472.  Chapter 171, Tax Code, is amended by adding 
Subchapter Y to read as follows:
	SUBCHAPTER Y.  TAX CREDIT FOR NEW JOBS
	Sec. 171.961.  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 is 
required to work at least 1,800 hours of work a year.
	Sec. 171.962.  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. 171.963.  AMOUNT OF CREDIT.  The credit is an amount 
equal to:   
		(1)  three percent of the first $30,000 in compensation 
paid to each full-time employee during the period on which the tax 
is based; and
		(2)  for each employee 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 three percent; and
			(C)  multiplying the number determined under 
Subdivision (B) by the first $30,000 in compensation paid to the 
employee.
	Sec. 171.964.  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. 171.965.  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. 171.966.  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.