79R168 DAK-D

By:  Wong                                                         H.B. No. 112



A BILL TO BE ENTITLED

AN ACT

relating to a tax credit for certain corporations for certain 
purchases that promote healthy living for employees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 171, Tax Code, is amended by adding 
Subchapter W to read as follows:

SUBCHAPTER W.  TAX CREDIT FOR CERTAIN PURCHASES PROMOTING HEALTHY 
LIVING FOR EMPLOYEES
	Sec. 171.921.  ENTITLEMENT TO CREDIT.  A corporation 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. 171.922.  QUALIFICATION.  A corporation qualifies for a 
credit under this subchapter if the corporation:
		(1)  has fewer than 100 employees or less than $1 
million in annual gross receipts; and
		(2)  purchases:                                                        
			(A)  a membership in a gym or other similar 
facility promoting fitness and healthy living for the use of an 
employee; or
			(B)  fitness or exercise equipment for the use of 
its employees.    
	Sec. 171.923.  AMOUNT; LIMITATIONS.  (a)  The amount of the 
credit is:
		(1)  for a purchase under Section 171.922(2)(A), the 
cost of the membership not to exceed $200 for each employee for whom 
the membership is purchased; and
		(2)  for a purchase under Section 171.922(2)(B), the 
cost of the equipment not to exceed $200 for each employee that has 
access to the equipment.
	(b)  The credit claimed for each privilege period may not 
exceed the amount of franchise tax due, before any other applicable 
tax credits, for the privilege period.
	(c)  A corporation may claim a credit under this subchapter 
for a purchase made during an accounting period only against the tax 
owed for the corresponding privilege period.
	(d)  A corporation may not carry over a purchase made during 
a privilege period to a subsequent privilege period.
	(e)  A corporation may not convey, assign, or transfer a 
credit under this subchapter to another entity unless all of the 
assets of the corporation are conveyed, assigned, or transferred in 
the same transaction.
	Sec. 171.924.  APPLICATION FOR CREDIT.  A corporation must 
apply for a credit under this subchapter on or with the tax report 
for the period for which the credit is claimed.
	Sec. 171.925.  RULES.  The comptroller shall adopt rules 
necessary to implement this subchapter.
	SECTION 2.  This Act applies only to a tax report originally 
due on or after the effective date of this Act.
	SECTION 3.  This Act takes effect January 1, 2006.