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A BILL TO BE ENTITLED
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AN ACT
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relating to the amount of the franchise tax incentive for certain |
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small employers that provide health care benefits to employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1013(b-1), Tax Code, is amended to |
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read as follows: |
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(b-1) This subsection applies to a taxable entity that is a |
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small employer, as that term is defined by Section 1501.002, |
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Insurance Code, and that has not provided health care benefits to |
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any of its employees in the calendar year preceding the beginning |
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date of its reporting period. Subject to Section 171.1014, a |
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taxable entity to which this subsection applies that elects to |
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subtract compensation for the purpose of computing its taxable |
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margin under Section 171.101 may subtract health care benefits as |
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provided under Subsection (b) and may also subtract: |
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(1) for the first 12-month period on which margin is |
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based and in which the taxable entity provides health care benefits |
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to all of its employees, an additional amount equal to 75 [50] |
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percent of the cost of health care benefits provided to its |
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employees for that period; [and] |
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(2) for the second 12-month period on which margin is |
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based and in which the taxable entity provides health care benefits |
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to all of its employees, an additional amount equal to 50 [25] |
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percent of the cost of health care benefits provided to its |
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employees for that period; and |
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(3) for the third 12-month period on which margin is |
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based and in which the taxable entity provides health care benefits |
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to all of its employees, an additional amount equal to 25 percent of |
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the cost of health care benefits provided to its employees for that |
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period. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |