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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 certain |
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employees. |
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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 R to read as follows: |
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SUBCHAPTER R. TAX CREDIT FOR WAGES PAID TO CERTAIN EMPLOYEES |
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Sec. 171.871. 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. 171.872. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter for each employee who: |
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(1) begins employment with the taxable entity on or |
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after September 1, 2015, in a full-time employment position; |
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(2) is a resident of this state; and |
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(3) on the date the employee begins employment as |
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described by Subdivision (1): |
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(A) had been a resident of this state for the |
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preceding five-year period; and |
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(B) had not previously been employed by the |
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taxable entity. |
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Sec. 171.873. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit is 50 percent of the wages paid by the taxable entity for |
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each employee described by Section 171.872. |
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(b) A taxable entity may claim the credit only for wages |
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paid to the employee described by Section 171.872 for a position |
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located or based in this state. |
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Sec. 171.874. 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. 171.875. 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 R, Chapter 171, Tax Code, as added by this Act, only for |
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wages paid or incurred on or after September 1, 2015, and only on a |
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franchise tax report due under Chapter 171, Tax Code, on or after |
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January 1, 2016. |
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SECTION 3. This Act takes effect January 1, 2016. |