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79R4170 DAK-D
By: Farabee H.B. No. 861
A BILL TO BE ENTITLED
AN ACT
relating to a tax credit for certain corporations obtaining
coverage for their employees under a health benefit plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter X to read as follows:
SUBCHAPTER X. TAX CREDIT FOR HEALTH BENEFIT PLAN FOR EMPLOYEES
Sec. 171.941. 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. 171.942. QUALIFICATION. A corporation qualifies for a
credit under this subchapter if the corporation obtains coverage
for its employees under a health benefit plan that constitutes
creditable coverage for the purposes of Section 1205.004, Insurance
Code.
Sec. 171.943. AMOUNT; LIMITATIONS. (a) The amount of the
credit is 50 percent of the cost to the corporation of obtaining
coverage for its employees under a health benefit plan.
(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 an expenditure made during an accounting period only against
the tax owed for the corresponding privilege period.
(d) A corporation may not carry over an expenditure 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. 171.944. 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. 171.945. 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.