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A BILL TO BE ENTITLED
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AN ACT
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relating to a temporary franchise tax discount for job creation and |
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retention. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended |
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by adding Section 171.0024 to read as follows: |
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Sec. 171.0024. TEMPORARY DISCOUNT FROM TAX LIABILITY FOR |
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JOB CREATION AND RETENTION. (a) This section applies only to a |
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report originally due on or after January 1, 2010, and before |
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January 1, 2011. |
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(b) A taxable entity is entitled to a discount of 25 percent |
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of the tax imposed under this chapter that the taxable entity is |
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required to pay after determining its taxable margin under Section |
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171.101, applying the appropriate rate of the tax under Section |
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171.002(a) or (b), and subtracting any other allowable credits or |
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discounts, including a discount under Section 171.0021, to enable |
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the taxable entity to create and retain jobs for residents of this |
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state. |
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(c) Notwithstanding Section 171.1016(c), a taxable entity |
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that elects to pay the tax as provided by Section 171.1016 is |
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entitled to a discount of 25 percent of the tax calculated under |
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that section for the purposes specified by Subsection (b). |
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(d) A taxable entity the tax liability of which is |
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discounted under this section is presumed to have used the amount by |
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which that liability was discounted for job creation and retention |
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purposes. The comptroller may not require the taxable entity to |
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provide documentation or any other proof regarding the use of that |
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amount. |
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(e) This section expires January 1, 2012. |
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SECTION 2. This Act takes effect January 1, 2010. |