84R8648 KLA-D
 
  By: Hughes H.B. No. 1746
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the computation of taxable margin for purposes of the
  franchise tax by certain taxable entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 171.1013, Tax Code, is amended by adding
  Subsection (i) to read as follows:
         (i)  Subject to Section 171.1014 and the limitation in
  Subsection (c), a taxable entity that elects to subtract
  compensation for the purpose of computing its taxable margin under
  Section 171.101 may include as wages and cash compensation any
  nonemployee compensation paid to an independent contractor as
  reported in Box 7 on Internal Revenue Service Form 1099-Misc or any
  subsequent form with a different number or designation that
  substantially provides the same information.
         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.