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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 certain taxable entities |
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offering postsecondary tuition assistance. |
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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 V to read as follows: |
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SUBCHAPTER V. TAX CREDIT FOR CERTAIN ENTITIES THAT PROVIDE |
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TUITION ASSISTANCE |
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Sec. 171.981. DEFINITIONS. In this subchapter: |
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(1) "Neighborhood empowerment zone" has the meaning |
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assigned to "zone" by Section 378.001, Local Government Code. |
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(2) "Postsecondary educational institution" means any |
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public or private institution that provides courses of instruction |
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beyond that offered in secondary schools, including proprietary, |
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vocational, and technical schools. |
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Sec. 171.982. ELIGIBILITY FOR CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions and |
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limitations provided by this subchapter against the tax imposed |
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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 if: |
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(1) the taxable entity provides tuition assistance for |
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an employee attending a postsecondary educational institution; |
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(2) the taxable entity is located in a neighborhood |
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empowerment zone; and |
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(3) the amount of the taxable entity's total revenue |
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from its entire business for the period for which the credit is |
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claimed is less than $10 million. |
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Sec. 171.984. AMOUNT; LIMITATION. (a) Except as otherwise |
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provided by this section, the amount of the credit for a period is |
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equal to the lesser of the amount of tuition assistance provided to |
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all employees during the period and $5,000. |
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(b) The total credit claimed for a report may not exceed the |
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amount of franchise tax due for the report after all other |
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applicable tax credits. |
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(c) A taxable entity may claim a credit under this |
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subchapter for an expenditure made during a reporting period only |
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against the tax owed for the period. |
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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 adopt a form for the application |
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for the credit. A taxable entity must use the form in applying for |
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the credit. |
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Sec. 171.986. ASSIGNMENT PROHIBITED. A taxable entity may |
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not convey, assign, or transfer the credit allowed under this |
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subchapter to another taxable entity unless all of the assets of the |
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taxable entity are conveyed, assigned, or transferred in the same |
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transaction. |
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Sec. 171.987. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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Sec. 171.988. EXPIRATION. This subchapter expires December |
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31, 2020. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2016. |