84R6532 GRM-D
 
  By: Romero, Jr. H.B. No. 1634
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for certain taxable entities
  offering postsecondary tuition assistance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter V to read as follows:
  SUBCHAPTER V.  TAX CREDIT FOR CERTAIN ENTITIES THAT PROVIDE
  TUITION ASSISTANCE
         Sec. 171.981.  DEFINITIONS. In this subchapter:
               (1)  "Neighborhood empowerment zone" has the meaning
  assigned to "zone" by Section 378.001, Local Government Code.
               (2)  "Postsecondary educational institution" means any
  public or private institution that provides courses of instruction
  beyond that offered in secondary schools, including proprietary,
  vocational, and technical schools.
         Sec. 171.982.  ELIGIBILITY FOR CREDIT. A taxable entity is
  entitled to a credit in the amount and under the conditions and
  limitations provided by this subchapter against the tax imposed
  under this chapter.
         Sec. 171.983.  QUALIFICATION. A taxable entity qualifies
  for a credit under this subchapter if:
               (1)  the taxable entity provides tuition assistance for
  an employee attending a postsecondary educational institution;
               (2)  the taxable entity is located in a neighborhood
  empowerment zone; and
               (3)  the amount of the taxable entity's total revenue
  from its entire business for the period for which the credit is
  claimed is less than $10 million.
         Sec. 171.984.  AMOUNT; LIMITATION.  (a)  Except as otherwise
  provided by this section, the amount of the credit for a period is
  equal to the lesser of the amount of tuition assistance provided to
  all employees during the period and $5,000.
         (b)  The total credit claimed for a report may not exceed the
  amount of franchise tax due for the report after all other
  applicable tax credits.
         (c)  A taxable entity may claim a credit under this
  subchapter for an expenditure made during a reporting period only
  against the tax owed for the period.
         Sec. 171.985.  APPLICATION FOR CREDIT. (a) A taxable entity
  must apply for a credit under this subchapter on or with the tax
  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. 171.986.  ASSIGNMENT PROHIBITED. A taxable entity may
  not convey, assign, or transfer the credit allowed under this
  subchapter to another taxable entity unless all of the assets of the
  taxable entity are conveyed, assigned, or transferred in the same
  transaction.
         Sec. 171.987.  RULES. The comptroller shall adopt rules
  necessary to implement this subchapter.
         Sec. 171.988.  EXPIRATION. This subchapter expires December
  31, 2020.
         SECTION 2.  This Act applies only to a report originally due
  on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2016.