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A BILL TO BE ENTITLED
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AN ACT
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relating to providing a sales and use tax refund or franchise tax |
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credit for businesses that employ persons with disabilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
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by adding Section 151.4293 to read as follows: |
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Sec. 151.4293. TAX REFUND FOR EMPLOYERS WHO HIRE PERSONS |
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WITH DISABILITIES. (a) In this section, "person with a disability" |
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means a person who, at the time of being hired, is at least 18 years |
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of age but not older than 62 years of age and: |
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(1) has a disability as defined by 42 U.S.C. Section |
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12102; |
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(2) receives Supplemental Security Income (SSI) |
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benefits under 42 U.S.C. Section 1381 et seq. on the basis of |
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disability or blindness or Social Security Disability Insurance |
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(SSDI) benefits under 42 U.S.C. Section 401 et seq.; |
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(3) qualifies for or is receiving vocational |
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rehabilitation services provided through the Texas Workforce |
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Commission; |
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(4) is a veteran as defined by 38 U.S.C. Section 101 |
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who has suffered at least a 50 percent service-connected disability |
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as defined by that section; or |
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(5) completes an affidavit that: |
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(A) includes: |
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(i) the person's full name; |
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(ii) the person's address; |
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(iii) a copy of the person's driver's |
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license, election identification certificate, or personal |
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identification card issued by the Department of Public Safety; and |
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(iv) the person's signature; and |
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(B) is accompanied by a letter from a physician |
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that verifies the person's disability. |
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(b) Except as provided by Subsection (c), a person is |
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eligible for a refund of 15 percent of the taxes imposed on taxable |
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items purchased by the person and paid under this chapter during a |
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calendar year if during that entire year at least 10 percent of the |
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person's employees were persons with disabilities and were employed |
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in full-time employment positions that paid at least minimum wage |
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and that were located or based in this state. |
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(c) A person is not eligible for a refund under this section |
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for a calendar year if the person will, as a taxable entity as |
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defined by Section 171.0002 or as a member of a combined group that |
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is a taxable entity, claim a credit under Subchapter K-1, Chapter |
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171, on a franchise tax report covering any portion of that year. |
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(d) A person must apply to the comptroller to receive a |
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refund under this section. |
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SECTION 2. Chapter 171, Tax Code, is amended by adding |
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Subchapter K-1 to read as follows: |
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SUBCHAPTER K-1. TAX CREDIT FOR EMPLOYERS WHO HIRE PERSONS WITH |
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DISABILITIES |
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Sec. 171.571. DEFINITION. In this subchapter, "person with |
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a disability" has the meaning assigned by Section 151.4293. |
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Sec. 171.572. 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. 171.573. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter on a report if during the entire |
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period on which the report is based at least 10 percent of the |
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taxable entity's employees were persons with disabilities and were |
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employed in full-time employment positions that paid at least |
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minimum wage and that were located or based in this state. |
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Sec. 171.574. INELIGIBILITY FOR CREDIT FOR CERTAIN PERIODS. |
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A taxable entity is not eligible for a credit on a report if the |
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taxable entity, or a member of the combined group if the taxable |
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entity is a combined group, received, for taxes paid under Chapter |
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151 during any part of the period on which the report is based, a |
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refund under Section 151.4293. |
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Sec. 171.575. AMOUNT; LIMITATIONS. The amount of the |
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credit under this subchapter is equal to 15 percent of the amount of |
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franchise tax due for the report after the application of all other |
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applicable tax credits. |
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Sec. 171.576. 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. 171.577. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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taxable entity may claim a credit under this subchapter on a report |
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only in connection with the employment of persons with disabilities |
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during the accounting period on which the report is based. |
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SECTION 3. Subchapter K-1, Chapter 171, Tax Code, as added |
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by this Act, applies only to a report originally due on or after the |
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effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2020. |