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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for wages paid to graduates of |
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certain institutions of higher education. |
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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 Y to read as follows: |
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SUBCHAPTER Y. TAX CREDIT FOR WAGES PAID TO GRADUATES |
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OF CERTAIN INSTITUTIONS OF HIGHER EDUCATION |
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Sec. 171.981. DEFINITION. In this subchapter, "public or |
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private institution of higher education" has the meaning assigned |
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by Section 61.801, Education Code. |
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Sec. 171.982. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions provided |
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by this subchapter against the tax imposed under this chapter. |
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Sec. 171.983. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter for each employee who: |
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(1) is a graduate of a public or private institution of |
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higher education at the time the employee is hired if the employee |
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attended a campus of that institution that is located in the same |
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county as the county in which the employee performs the employee's |
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primary job functions; or |
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(2) graduates from a public or private institution of |
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higher education during the time the employee is employed with the |
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taxable entity if the employee attended a campus of that |
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institution that is located in the same county as the county in |
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which the employee performs the employee's primary job functions. |
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Sec. 171.984. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit is 10 percent of the wages paid by the taxable entity for |
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each qualified employee. |
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(b) A taxable entity may claim the credit only for wages |
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paid to the qualified employee: |
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(1) for a position located or based in this state; and |
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(2) after the employee graduates from the public or |
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private institution of higher education. |
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Sec. 171.985. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the tax |
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report for the period for which the credit is claimed. |
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(b) The comptroller shall promulgate a form for the |
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application for the credit. A taxable entity must use the form in |
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applying for the credit. |
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Sec. 171.986. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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taxable entity may claim a credit under this subchapter for wages |
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paid during an accounting period only against the tax owed for the |
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corresponding privilege period. |
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SECTION 2. A taxable entity may claim the credit under |
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Subchapter Y, Chapter 171, Tax Code, as added by this Act, only for |
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any wages paid or incurred on or after the effective date of this |
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Act and only on a franchise tax report due under Chapter 171, Tax |
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Code, on or after January 1, 2010. |
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SECTION 3. This Act takes effect January 1, 2010. |