| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to providing a sales and use tax refund or franchise tax |
|
|
credit for businesses that employ former offenders. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
|
|
by adding Section 151.4292 to read as follows: |
|
|
Sec. 151.4292. TAX REFUND FOR EMPLOYERS WHO HIRE FORMER |
|
|
OFFENDERS. (a) In this section, "former offender" means a person |
|
|
who: |
|
|
(1) received a sentence that included imprisonment; |
|
|
and |
|
|
(2) was subsequently released from the imprisonment, |
|
|
including a release on parole or to mandatory supervision and a |
|
|
release following discharge of the defendant's sentence. |
|
|
(b) Except as provided by Subsection (c), a person is |
|
|
eligible for a refund of 15 percent of the taxes paid under this |
|
|
chapter during a reporting period if the person employs at least one |
|
|
former offender in a full-time employment position located or based |
|
|
in this state during that entire reporting period. |
|
|
(c) A person is not eligible for a refund under this section |
|
|
during a reporting period if the person will, as a taxable entity as |
|
|
defined by Section 171.0002 or as a member of a combined group that |
|
|
is a taxable entity, claim a credit under Subchapter O-1, Chapter |
|
|
171, on a franchise tax report covering that reporting period. |
|
|
(d) A person must apply to the comptroller to receive a |
|
|
refund under this section. |
|
|
SECTION 2. Chapter 171, Tax Code, is amended by adding |
|
|
Subchapter O-1 to read as follows: |
|
|
SUBCHAPTER O-1. TAX CREDIT FOR EMPLOYERS WHO HIRE FORMER OFFENDERS |
|
|
Sec. 171.781. DEFINITION. In this subchapter, "former |
|
|
offender" means a person who: |
|
|
(1) received a sentence that included imprisonment; |
|
|
and |
|
|
(2) was subsequently released from the imprisonment, |
|
|
including a release on parole or to mandatory supervision and a |
|
|
release following discharge of the defendant's sentence. |
|
|
Sec. 171.782. ENTITLEMENT TO CREDIT. A taxable entity is |
|
|
entitled to a credit in the amount and under the conditions provided |
|
|
by this subchapter against the tax imposed under this chapter. |
|
|
Sec. 171.783. QUALIFICATION. A taxable entity qualifies |
|
|
for a credit under this subchapter if the taxable entity employs at |
|
|
least one former offender in a full-time employment position |
|
|
located or based in this state during the entire period on which the |
|
|
report is based. |
|
|
Sec. 171.784. INELIGIBILITY FOR CREDIT FOR CERTAIN PERIODS. |
|
|
A taxable entity is not eligible for a credit on a report if the |
|
|
taxable entity, or a member of the combined group if the taxable |
|
|
entity is a combined group, received, for taxes paid under Chapter |
|
|
151 during the period on which the report is based, a refund under |
|
|
Section 151.4292. |
|
|
Sec. 171.785. AMOUNT; LIMITATIONS. The amount of the |
|
|
credit under this subchapter is equal to 15 percent of the amount of |
|
|
franchise tax due for the report after the application of all other |
|
|
applicable tax credits. |
|
|
Sec. 171.786. 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 promulgate a form for the |
|
|
application for the credit. A taxable entity must use the form in |
|
|
applying for the credit. |
|
|
Sec. 171.787. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
|
|
taxable entity may claim a credit under this subchapter on a report |
|
|
only in connection with the employment of a former offender during |
|
|
the accounting period on which the report is based. |
|
|
SECTION 3. Subchapter O-1, Chapter 171, Tax Code, as added |
|
|
by this Act, applies only to a report originally due on or after the |
|
|
effective date of this Act. |
|
|
SECTION 4. This Act takes effect January 1, 2018. |