|
SECTION 1. Chapter 171, Tax
Code, is amended by adding Subchapters P and Q to read as follows:
SUBCHAPTER P. TAX CREDITS
FOR CERTAIN VETERAN JOB CREATION ACTIVITIES
Sec. 171.701.
DEFINITIONS. In this subchapter:
(1) "Agricultural
processing" means an establishment primarily engaged in activities
described in categories 0724, 2011-2099, 2211,
2231, 2824, 2833, 2834, 2835, 2836, 2841, 3111-3199, 3262, or 3952, in product classes 28692 or 28698
of category 2869, or in product classes 28992 or 28994 of category 2899
of the 1987 Standard Industrial Classification Manual published by the
United States Department of Labor.
(2) "Central
administrative offices" means an establishment primarily engaged in
performing management or support services for other establishments of the
same enterprise. An enterprise consists of all establishments having more
than 50 percent common direct or indirect ownership.
(3) "Data
processing" means an establishment primarily engaged in activities
described in categories 7371-7379 of the 1987 Standard Industrial
Classification Manual published by the United States Department of Labor.
(4)
"Distribution" means an establishment primarily engaged in activities
described in categories 5012-5199 of the 1987 Standard Industrial
Classification Manual published by the United States Department of Labor.
(5) "Group health
benefit plan" means:
(A) a health plan
provided by a health maintenance organization established under Chapter
843, Insurance Code;
(B) a health benefit plan
approved by the commissioner of insurance; or
(C) a self-funded or
self-insured employee welfare benefit plan that provides health benefits
and is established in accordance with the Employee Retirement Income
Security Act of 1974 (29 U.S.C. Section 1001 et seq.).
(6)
"Manufacturing" means an establishment primarily engaged in
activities described in categories 2011-3999 of the 1987 Standard
Industrial Classification Manual published by the United States Department
of Labor.
(7) "Qualified
business" means an establishment primarily engaged in agricultural
processing, central administrative offices, distribution, data processing,
manufacturing, research and development, or warehousing.
(8) "Qualifying
job" means a new permanent full-time job that:
(A) pays an annual wage
of at least $50,000, subject to Section 171.772;
(B) is covered by a group
health benefit plan for which the business pays at least 80 percent of the
premiums or other charges assessed under the plan for the employee; and
(C) is not created to
replace a previous employee.
(9) "Research and
development" means an establishment primarily engaged in activities
described in category 8731 of the 1987 Standard Industrial Classification
Manual published by the United States Department of Labor.
(10) "Veteran"
means a person who:
(A) has served in:
(i) the army, navy, air force, coast guard, or marine
corps of the United States or the United States Public Health
Service under 42 U.S.C. Section 201 et seq., as
amended;
(ii) the Texas military
forces as defined by Section 437.001; or
(iii) an auxiliary
service of one of those branches of the armed forces; and
(B) has been honorably
discharged from the branch of the service in which the person served.
(10)
"Warehousing" means an establishment primarily engaged in
activities described in categories 4221-4226 of the 1987 Standard
Industrial Classification Manual published by the United States Department
of Labor.
Sec. 171.702. BIENNIAL
ADJUSTMENT OF WAGE FOR QUALIFYING JOB. (a) In this section,
"consumer price index" means the average over a state fiscal
biennium of the Consumer Price Index for All Urban Consumers (CPI-U), U.S.
City Average, published monthly by the United States Bureau of Labor
Statistics, or its successor in function.
(b) Beginning in 2016, on January 1 of each even-numbered
year, the wage amount prescribed by Section 171.771(8) is increased or
decreased by an amount equal to the amount prescribed by that section on
December 31 of the preceding year multiplied by the percentage increase or
decrease during the preceding state fiscal biennium in the consumer price
index and rounded to the nearest dollar.
(c) The amount determined
under Subsection (b) applies to a report originally due on or after the
date the determination is made.
(d) The comptroller shall
make the determination required by this section and may adopt rules related
to making that determination.
(e) A determination by
the comptroller under this section is final and may not be appealed.
Sec. 171.703.
ELIGIBILITY.
Sec. 171.704. AMOUNT OF
CREDIT. A taxable entity may establish a credit equal to 25 percent of the
total wages paid by the taxable entity for each qualifying job filled by a veteran during each of the
first 12 months of employment of the person hired to perform the job that
occur during the period on which the report is based.
Sec. 171.705. LENGTH OF
CREDIT.
Sec. 171.706.
LIMITATIONS. (a) The total credit claimed under this subchapter for a
report, including the amount of any carryforward credit under Section 171.707,
may not exceed 50 percent of the amount of franchise tax due for the report
before any other applicable tax credits.
(b) The total credit
claimed under this subchapter and Subchapter Q for a report, including the
amount of any carryforward credits, may not exceed the amount of franchise
tax due for the report after any other applicable credits.
Sec. 171.707.
CARRYFORWARD. (a) If a taxable entity is eligible for a credit that
exceeds the limitations under Section 171.706, the taxable entity may carry
the unused credit forward for not more than five consecutive reports.
(b) A carryforward is
considered the remaining portion of an installment that cannot be claimed
in the current year because of a limitation under Section 171.706. A
carryforward is added to the next year's installment of the credit in
determining the limitation for that year. A credit carryforward from a
previous report is considered to be used before the current year
installment.
Sec. 171.708.
CERTIFICATION OF ELIGIBILITY.
(a) For the initial and
each succeeding report on which a credit is claimed under this subchapter,
the taxable entity shall file with its report, on a form provided by the
comptroller, information that sufficiently demonstrates that the taxable
entity is eligible for the credit.
(b) The burden of
establishing entitlement to and the value of the credit is on the taxable
entity.
(c) A credit expires
under this subchapter and the taxable entity may not take any remaining
installment of the credit if in one of the five years in which the
installment of a credit accrues, the taxable entity fails to maintain the
minimum number of qualifying jobs required to be created by Section 171.703.
(d) Notwithstanding
Subsection (c), the taxable entity may take the portion of an installment
that accrued in a previous year and was carried forward to the extent
permitted under Section 171.707.
Sec. 171.709. ASSIGNMENT
PROHIBITED.
Sec. 171.710. BIENNIAL
REPORT BY COMPTROLLER. (a) Before the beginning of each regular session
of the legislature, the comptroller shall submit to the governor, the
lieutenant governor, and the speaker of the house of representatives a
report that states:
(1) the total number of
jobs created by taxable entities that claim a credit under this subchapter
and the average and median annual wage of those jobs;
(2) the total amount of
credits applied against the tax under this chapter and the amount of unused
credits including:
(A) the total amount of
franchise tax due by taxable entities claiming a credit under this
subchapter before and after the application of the credit;
(B) the average
percentage reduction in franchise tax due by taxable entities claiming a
credit under this subchapter; and
(C) the percentage of tax
credits that were awarded to taxable entities with fewer than 100
employees;
(3) the two-digit
standard industrial classification of businesses
claiming a credit under this subchapter;
(4) the geographical
distribution of the credits claimed under this subchapter; and
(5) the effect of the
credit provided under this subchapter on employment, personal income, and
capital investment in this state and on state tax revenues.
(b) The final report
issued before the expiration of this subchapter must include historical
information on the credit authorized under this subchapter.
(c) The comptroller may
not include in the report information that is confidential by law.
(d) For purposes of this
section, the comptroller may require a taxable entity that claims a credit
under this subchapter to submit information, on a form provided by the
comptroller, on the location of the taxable entity's job creation in this
state and any other information necessary to complete the report required
under this section.
(e) The comptroller shall
provide notice to the members of the legislature that the report required
under this section is available on request.
Sec. 171.711. COMPTROLLER
POWERS AND DUTIES.
Sec. 171.712.
EXPIRATION. (a) This subchapter expires December 31, 2025.
(b) The expiration of
this subchapter does not affect the carryforward of a credit under Section
171.707 or those credits for which a taxable entity is eligible before the
date this subchapter expires.
SUBCHAPTER Q. TAX CREDITS
FOR CERTAIN CAPITAL INVESTMENTS IN VETERAN JOB CREATION
Sec. 171.801.
DEFINITIONS.
Sec. 171.802.
ELIGIBILITY. (a) A qualified business 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.
(b) To qualify for the
credit authorized under this subchapter, a qualified business must:
(1) pay an annual wage of
at least the amount required for a qualifying job to a veteran as defined by Section 171.701 for
the period on which the report is based;
(2) offer health benefits
coverage to all full-time employees at the location with respect to which
the credit is claimed through a group health benefit plan, as defined by Section
171.701, for which the business pays at least 80 percent of the premiums or
other charges assessed under the plan for the employees; and
(3) make a minimum
$500,000 qualified capital investment.
Sec. 171.803. AMOUNT OF
CREDIT.
Sec. 171.804. LENGTH OF
CREDIT.
Sec. 171.805.
LIMITATIONS. (a) The total credit claimed under this subchapter for a
report, including the amount of any carryforward credit under Section 171.806,
may not exceed 50 percent of the amount of franchise tax due for the report
before any other applicable tax credits.
(b) The total credit
claimed under this subchapter and Subchapter P for a report, including the
amount of any carryforward credits, may not exceed the amount of franchise
tax due for the report after any other applicable tax credits.
Sec. 171.826.
CARRYFORWARD. (a) If a taxable entity is eligible for a credit from an
installment that exceeds the limitation under Section 171.805, the taxable
entity may carry the unused credit forward for not more than five consecutive
reports.
(b) A carryforward is
considered the remaining portion of an installment that cannot be claimed
in the current year because of a limitation under Section 171.805. A
carryforward is added to the next year's installment of the credit in determining
the limitation for that year. A credit carryforward from a previous report
is considered to be used before the current year installment.
Sec. 171.807.
CERTIFICATION OF ELIGIBILITY. (a) For the initial and each succeeding
report on which a credit is claimed under this subchapter, the taxable
entity shall file with its report, on a form provided by the comptroller,
information that sufficiently demonstrates that the taxable entity is
eligible for the credit.
(b) The burden of
establishing entitlement to and the value of the credit is on the taxable
entity.
(c) A credit expires
under this subchapter and the taxable entity may not take any remaining
installment of the credit if in one of the five years in which the
installment of a credit accrues, the taxable entity:
(1) disposes of the
qualified capital investment;
(2) takes the qualified
capital investment out of service;
(3) moves the qualified
capital investment out of this state; or
(4) fails to pay the
annual wage required for a qualifying job under Section 171.701 for the
period covered by the report on which the taxable entity would otherwise
claim the credit.
(d) Notwithstanding
Subsection (c), the taxable entity may take the portion of an installment
that accrued in a previous year and was carried forward to the extent
permitted under Section 171.806.
Sec. 171.808. ASSIGNMENT
PROHIBITED.
Sec. 171.809. BIENNIAL
REPORT BY COMPTROLLER.
Sec. 171.810. COMPTROLLER
POWERS AND DUTIES.
Sec. 171.811. EXPIRATION.
(a) This subchapter expires December 31, 2025.
(b) The expiration of
this subchapter does not affect the carryforward of a credit under Section
171.806 or those credits for which a taxable entity is eligible before the
date this subchapter expires.
|
SECTION 1. Chapter 171, Tax
Code, is amended by adding Subchapters P and Q to read as follows:
SUBCHAPTER P. TAX CREDITS
FOR EMPLOYMENT OF VETERANS
Sec. 171.771.
DEFINITIONS. In this subchapter:
(1) "Agricultural
processing" means an establishment primarily engaged in activities
described in categories 0724, 2011-2099, or 3111-3199 of the 1987 Standard
Industrial Classification Manual published by the United States Department
of Labor.
(2) "Central
administrative offices" means an establishment primarily engaged in performing
management or support services for other establishments of the same
enterprise. An enterprise consists of all establishments having more than
50 percent common direct or indirect ownership.
(3) "Data
processing" means an establishment primarily engaged in activities
described in categories 7371-7379 of the 1987 Standard Industrial
Classification Manual published by the United States Department of Labor.
(4)
"Distribution" means an establishment primarily engaged in
activities described in categories 5012-5199 of the 1987 Standard
Industrial Classification Manual published by the United States Department
of Labor.
(5) "Group health
benefit plan" means:
(A) a health plan
provided by a health maintenance organization established under Chapter
843, Insurance Code;
(B) a health benefit plan
approved by the commissioner of insurance; or
(C) a self-funded or
self-insured employee welfare benefit plan that provides health benefits
and is established in accordance with the Employee Retirement Income Security
Act of 1974 (29 U.S.C. Section 1001 et seq.).
(6)
"Manufacturing" means an establishment primarily engaged in
activities described in categories 2011-3999 of the 1987 Standard
Industrial Classification Manual published by the United States Department
of Labor.
(7) "Qualified
business" means an establishment primarily engaged in agricultural
processing, central administrative offices, distribution, data processing,
manufacturing, research and development, or warehousing.
(8) "Qualifying
job" means a new permanent full-time job that:
(A) is held by a veteran;
(B) pays an annual wage
of at least $50,000, subject to Section 171.772;
(C) is covered by a group
health benefit plan for which the business pays at least 80 percent of the
premiums or other charges assessed under the plan for the employee; and
(D) is not created to
replace a previous employee.
(9) "Research and
development" means an establishment primarily engaged in activities
described in category 8731 of the 1987 Standard Industrial Classification
Manual published by the United States Department of Labor.
(10) "Veteran"
means a person who:
(A) has served in:
(i) the armed forces of the United States or the
United States Public Health Service under 42 U.S.C. Section 201 et seq.;
(ii) the Texas military
forces, as defined by Section 437.001, Government
Code; or
(iii) an auxiliary
service of a branch of the armed forces described by Subparagraph (i) or
(ii); and
(B) has been honorably
discharged from the branch of the service in which the person served.
(11)
"Warehousing" means an establishment primarily engaged in
activities described in categories 4221-4226 of the 1987 Standard
Industrial Classification Manual published by the United States Department
of Labor.
Sec. 171.772. BIENNIAL
ADJUSTMENT OF WAGE FOR QUALIFYING JOB. (a) In this section,
"consumer price index" means the average over a state fiscal
biennium of the Consumer Price Index for All Urban Consumers (CPI-U), U.S.
City Average, published monthly by the United States Bureau of Labor
Statistics, or its successor in function.
(b) Beginning in 2018, on January 1 of each even-numbered
year, the wage amount prescribed by Section 171.771(8) is increased or
decreased by an amount equal to the amount prescribed by that section on
December 31 of the preceding year multiplied by the percentage increase or
decrease during the preceding state fiscal biennium in the consumer price
index and rounded to the nearest dollar.
(c) The amount determined
under Subsection (b) applies to a report originally due on or after the
date the determination is made.
(d) The comptroller shall
make the determination required by this section and may adopt rules related
to making that determination.
(e) A determination by
the comptroller under this section is final and may not be appealed.
Sec. 171.773.
ELIGIBILITY.
Sec. 171.774. AMOUNT OF
CREDIT. A taxable entity may establish a credit equal to 25 percent of the
total wages paid by the taxable entity for each qualifying job during each
of the first 12 months of employment of the person hired to perform the job
that occur during the period on which the report is based.
Sec. 171.775. LENGTH OF
CREDIT.
Sec. 171.776. Substantially
the same as introduced version.
Sec. 171.777. Substantially
the same as introduced version.
Sec. 171.778. Substantially
the same as introduced version.
Sec. 171.779. ASSIGNMENT
PROHIBITED.
Sec. 171.780. BIENNIAL
REPORT BY COMPTROLLER. (a) Before the beginning of each regular session
of the legislature, the comptroller shall submit to the governor, the
lieutenant governor, and the speaker of the house of representatives a
report that states:
(1) the total number of
jobs created by taxable entities that claim a credit under this subchapter
and the average and median annual wage of those jobs;
(2) the total amount of
credits applied against the tax under this chapter and the amount of unused
credits including:
(A) the total amount of
franchise tax due by taxable entities claiming a credit under this
subchapter before and after the application of the credit;
(B) the average
percentage reduction in franchise tax due by taxable entities claiming a
credit under this subchapter; and
(C) the percentage of tax
credits that were awarded to taxable entities with fewer than 100
employees;
(3) the two-digit
standard industrial classification of taxable
entities claiming a credit under this subchapter;
(4) the geographical
distribution of the credits claimed under this subchapter; and
(5) the effect of the
credit provided under this subchapter on employment, personal income, and
capital investment in this state and on state tax revenues.
(b) The final report
issued before the expiration of this subchapter must include historical
information on the credit authorized under this subchapter.
(c) The comptroller may
not include in the report information that is confidential by law.
(d) For purposes of this
section, the comptroller may require a taxable entity that claims a credit
under this subchapter to submit information, on a form provided by the
comptroller, on the location of the taxable entity's job creation in this
state and any other information necessary to complete the report required
under this section.
(e) The comptroller shall
provide notice to the members of the legislature that the report required
under this section is available on request.
Sec. 171.781. COMPTROLLER
POWERS AND DUTIES.
Sec. 171.782. Substantially
the same as introduced version.
SUBCHAPTER Q. TAX CREDITS
FOR CERTAIN CAPITAL INVESTMENTS MADE BY BUSINESSES THAT EMPLOY VETERANS
Sec. 171.821.
DEFINITIONS.
Sec. 171.822.
ELIGIBILITY. (a) A qualified business 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.
(b) To qualify for the
credit authorized under this subchapter, a qualified business must:
(1) pay an annual wage to
each veteran employed by the qualified business of at least the amount required
for a qualifying job as defined by Section 171.771 for the period on which
the report is based;
(2) offer health benefits
coverage to all full-time employees at the location with respect to which
the credit is claimed through a group health benefit plan, as defined by
Section 171.771, for which the business pays at least 80 percent of the
premiums or other charges assessed under the plan for the employees; and
(3) make a minimum
$500,000 qualified capital investment.
Sec. 171.823. AMOUNT OF
CREDIT.
Sec. 171.824. LENGTH OF
CREDIT.
Sec. 171.825. Substantially
the same as introduced version.
Sec. 171.826. Substantially
the same as introduced version.
Sec. 171.827.
CERTIFICATION OF ELIGIBILITY. (a) For the initial and each succeeding
report on which a credit is claimed under this subchapter, the taxable
entity shall file with its report, on a form provided by the comptroller,
information that sufficiently demonstrates that the taxable entity is
eligible for the credit.
(b) The burden of
establishing entitlement to and the value of the credit is on the taxable
entity.
(c) A credit expires
under this subchapter and the taxable entity may not take any remaining
installment of the credit if in one of the five years in which the
installment of a credit accrues, the taxable entity:
(1) disposes of the
qualified capital investment;
(2) takes the qualified
capital investment out of service;
(3) moves the qualified
capital investment out of this state; or
(4) fails to pay in accordance with Section 171.822(b)(1)
the annual wage required for a qualifying job under Section 171.771 for the
period covered by the report on which the taxable entity would otherwise
claim the credit.
(d) Notwithstanding
Subsection (c), the taxable entity may take the portion of an installment
that accrued in a previous year and was carried forward to the extent
permitted under Section 171.826.
Sec. 171.828. ASSIGNMENT
PROHIBITED.
Sec. 171.829. BIENNIAL
REPORT BY COMPTROLLER.
Sec. 171.830. COMPTROLLER
POWERS AND DUTIES.
Sec. 171.831. Substantially
the same as introduced version.
|