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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 taxable entities offering |
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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 K to read as follows: |
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SUBCHAPTER K. TAX CREDIT FOR TAXABLE ENTITIES THAT PROVIDE |
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TUITION ASSISTANCE |
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Sec. 171.551. DEFINITION. In this subchapter, |
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"postsecondary educational institution" means any public or |
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private institution that provides courses of instruction beyond |
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that offered in secondary schools, including proprietary, |
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vocational, and technical schools. |
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Sec. 171.552. 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. 171.553. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity provides |
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tuition assistance for an employee attending a postsecondary |
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educational institution. |
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Sec. 171.554. AMOUNT; LIMITATION. (a) The amount of the |
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credit for a period is equal to the lesser of the amount of tuition |
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assistance provided to all employees during the period and 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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(b) 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. 171.555. 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. 171.556. 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. 171.557. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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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, 2020. |