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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 that |
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provide paid family care leave. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. This Act may be cited as the Family First Act. |
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SECTION 2. Chapter 171, Tax Code, is amended by adding |
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Subchapter X to read as follows: |
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SUBCHAPTER X. TAX CREDIT FOR PAID FAMILY CARE LEAVE |
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Sec. 171.9281. DEFINITIONS. In this subchapter: |
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(1) "Employee" means an individual who performs |
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services for an employer for compensation under an oral or written |
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contract of hire, whether express or implied. The term does not |
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include an independent contractor. |
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(2) "Infant" means a child younger than one year of |
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age. |
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Sec. 171.9282. 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. 171.9283. QUALIFICATION. A taxable entity with an |
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average of not more than 1,500 employees during the period on which |
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the report is based qualifies for a credit under this subchapter if |
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the taxable entity provides paid family care leave to an employee |
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according to a policy adopted by the taxable entity under which an |
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employee is entitled to at least: |
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(1) four weeks of paid leave following giving birth to |
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an infant; |
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(2) two weeks of paid leave following the birth of the |
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employee's infant, if Subdivision (1) does not apply to the |
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employee; and |
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(3) two weeks of paid leave following the adoption of |
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an infant by the employee or placement by the Department of Family |
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and Protective Services of an infant in substitute care with the |
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employee. |
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Sec. 171.9284. AMOUNT OF CREDIT. The amount of the credit |
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for a report is equal to the lesser of: |
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(1) twice the amount of the costs attributable to |
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providing paid family care leave described by Section 171.9283 to |
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employees during the accounting period on which the report is |
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based; or |
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(2) the amount of franchise tax due for the report |
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after applying all other applicable credits. |
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Sec. 171.9285. APPLICATION FOR CREDIT. (a) A taxable |
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entity must apply for a credit under this subchapter on or with the |
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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. 171.9286. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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taxable entity may claim a credit under this subchapter for a report |
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only in connection with paid family care leave provided to an |
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employee during the accounting period on which the report is based. |
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Sec. 171.9287. RULES. The comptroller shall adopt rules |
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regarding the manner by which a taxable entity may demonstrate the |
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costs attributable to providing paid family care leave for purposes |
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of Section 171.9284. |
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SECTION 3. 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 4. This Act takes effect January 1, 2022. |