87R815 SMT-D
 
  By: Sherman, Sr. H.B. No. 361
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for taxable entities that
  provide paid family care leave.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  This Act may be cited as the Family First Act.
         SECTION 2.  Chapter 171, Tax Code, is amended by adding
  Subchapter X to read as follows:
  SUBCHAPTER X. TAX CREDIT FOR PAID FAMILY CARE LEAVE
         Sec. 171.9281.  DEFINITIONS. In this subchapter:
               (1)  "Employee" means an individual who performs
  services for an employer for compensation under an oral or written
  contract of hire, whether express or implied. The term does not
  include an independent contractor.
               (2)  "Infant" means a child younger than one year of
  age.
         Sec. 171.9282.  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. 171.9283.  QUALIFICATION. A taxable entity with an
  average of not more than 1,500 employees during the period on which
  the report is based qualifies for a credit under this subchapter if
  the taxable entity provides paid family care leave to an employee
  according to a policy adopted by the taxable entity under which an
  employee is entitled to at least:
               (1)  four weeks of paid leave following giving birth to
  an infant;
               (2)  two weeks of paid leave following the birth of the
  employee's infant, if Subdivision (1) does not apply to the
  employee; and
               (3)  two weeks of paid leave following the adoption of
  an infant by the employee or placement by the Department of Family
  and Protective Services of an infant in substitute care with the
  employee.
         Sec. 171.9284.  AMOUNT OF CREDIT. The amount of the credit
  for a report is equal to the lesser of:
               (1)  twice the amount of the costs attributable to
  providing paid family care leave described by Section 171.9283 to
  employees during the accounting period on which the report is
  based; or
               (2)  the amount of franchise tax due for the report
  after applying all other applicable credits.
         Sec. 171.9285.  APPLICATION FOR CREDIT. (a) A taxable
  entity must apply for a credit under this subchapter on or with the
  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. 171.9286.  PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
  taxable entity may claim a credit under this subchapter for a report
  only in connection with paid family care leave provided to an
  employee during the accounting period on which the report is based.
         Sec. 171.9287.  RULES. The comptroller shall adopt rules
  regarding the manner by which a taxable entity may demonstrate the
  costs attributable to providing paid family care leave for purposes
  of Section 171.9284.
         SECTION 3.  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, 2022.