82R5802 MXM-D
 
  By: Kuempel H.B. No. 3608
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for contributions to programs
  for at-risk youth.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter T to read as follows:
  SUBCHAPTER T. TAX CREDIT FOR CONTRIBUTIONS TO PROGRAMS FOR
  AT-RISK YOUTH
         Sec. 171.871.  DESCRIPTION OF LOCAL COMMUNITY.  (a) The
  local community of a taxable entity eligible for a credit under this
  subchapter is, except as provided by Subsection (b):
               (1)  the municipality in which the headquarters of the
  taxable entity is located; or
               (2)  if the headquarters of the taxable entity is not
  located in a municipality, the county in which the taxable entity's
  headquarters is located.
         (b)  A taxable entity with a facility that is not located in
  the local community described by Subsection (a) may designate its
  contribution as originating from that facility. The local
  community of a taxable entity that makes this designation is:
               (1)  the municipality in which the designated facility
  is located; or
               (2)  if the designated facility is not located in a
  municipality, the county in which the designated facility is
  located.
         Sec. 171.872.  ELIGIBILITY.  A taxable entity is eligible
  for a credit against the tax imposed under this chapter in the
  amount and under the conditions and limitations provided by this
  subchapter.
         Sec. 171.873.  CONTRIBUTIONS ELIGIBLE FOR CREDIT.  (a) A
  taxable entity may claim a credit under this subchapter only for a
  contribution to a program designated by its local community, as
  described by Section 171.871, that provides services described by
  Subsection (b) for:
               (1)  children in at-risk situations and the families of
  those children as described by Subchapter D, Chapter 264, Family
  Code; or
               (2)  children who qualify, under criteria developed by
  the local community, as at-risk youth and the families of those
  children.
         (b)  Services provided by a program described by Subsection
  (a) may include only:
               (1)  services described by Section 264.302(f), Family
  Code; and
               (2)  other services identified by the local community
  relating to:
                     (A)  the education, training, and career
  development of at-risk youth; and
                     (B)  the provision of community service by at-risk
  youth.
         Sec. 171.874.  LIMITATIONS ON CREDIT. (a) Subject to the
  limitations of this subchapter, the amount of the credit is equal to
  the amount of the contribution made by the taxable entity.
         (b)  The total credit under this subchapter for a report may
  not exceed $5,000 of franchise tax due for the report.
         (c)  A taxable entity may claim a credit under this
  subchapter for a contribution made during an accounting period only
  against the tax owed for the corresponding reporting period.
         Sec. 171.875.  APPLICATION FOR CREDIT.  (a) A taxable entity
  must apply for a credit under this subchapter on or with the report
  for the period for which the credit is claimed.
         (b)  The comptroller shall adopt a form for the application
  for the credit.  A taxable entity must use the form in applying for
  the credit.
         Sec. 171.876.  ASSIGNMENT PROHIBITED.  A taxable entity may
  not convey, assign, or transfer the credit allowed under this
  subchapter to another entity unless all of the assets of the taxable
  entity are conveyed, assigned, or transferred in the same
  transaction.
         Sec. 171.877.  LIMITATION ON USE OF QUALIFYING
  CONTRIBUTIONS. A local community, as described by Section 171.871,
  that receives contributions for which a taxable entity qualifies
  for a credit under this subchapter may use those contributions only
  for the program designated by the local community to provide
  services to at-risk youth described by Section 171.873. The program
  may provide services to at-risk youth who do not reside in the local
  community.
         SECTION 2.    (a) This Act applies only to a report due on or
  after the effective date of this Act.
         (b)  A taxable entity may claim a credit under Subchapter T,
  Chapter 171, Tax Code, as added by this Act, only for a contribution
  made on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2012.