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A BILL TO BE ENTITLED
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AN ACT
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relating to a tax credit for certain corporations obtaining |
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coverage for their employees under a health benefit plan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter X to read as follows: |
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SUBCHAPTER X. TAX CREDIT FOR HEALTH BENEFIT PLAN FOR EMPLOYEES |
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Sec. 171.941. ENTITLEMENT TO CREDIT. A corporation is |
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entitled to a credit in the amount and under the conditions and |
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limitations provided by this subchapter against the tax imposed |
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under this chapter. |
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Sec. 171.942. QUALIFICATION. A corporation qualifies for a |
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credit under this subchapter if the corporation: |
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(1) has gross receipts from its entire business, as |
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determined by Section 171.105, for the reporting period in an |
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amount equal to or less than $750,000; and |
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(2) obtains coverage for its employees under a health |
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benefit plan that constitutes creditable coverage for the purposes |
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of Section 1205.004, Insurance Code. |
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Sec. 171.943. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit is 10 percent of the cost to the corporation of obtaining |
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coverage for its employees under a health benefit plan. |
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(b) The credit claimed for each privilege period may not |
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exceed the amount of franchise tax due, before any other applicable |
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tax credits, for the privilege period. |
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(c) A corporation may claim a credit under this subchapter |
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for an expenditure made during an accounting period only against |
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the tax owed for the corresponding privilege period. |
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(d) A corporation may not carry over an expenditure made |
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during a privilege period to a subsequent privilege period. |
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(e) A corporation may not convey, assign, or transfer a |
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credit under this subchapter to another entity unless all of the |
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assets of the corporation are conveyed, assigned, or transferred in |
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the same transaction. |
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Sec. 171.944. APPLICATION FOR CREDIT. A corporation must |
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apply for a credit under this subchapter on or with the tax report |
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for the period for which the credit is claimed. |
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Sec. 171.945. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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SECTION 2. This Act applies only to a tax report originally |
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due on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2006. |