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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 a taxable entity that assists |
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an employee in obtaining a high school diploma or high school |
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equivalency certificate. |
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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 ASSISTING EMPLOYEES IN OBTAINING HIGH |
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SCHOOL DIPLOMA OR EQUIVALENCY CERTIFICATE |
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Sec. 171.551. 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. 171.552. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity helps at |
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least one of the entity's employees obtain a high school diploma or |
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high school equivalency certificate during the period for which the |
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report on which the credit is claimed is based. |
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Sec. 171.553. AMOUNT OF CREDIT; LIMITATION. (a) Subject to |
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Subsection (b), the amount of the credit for a report is the lesser |
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of: |
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(1) $2,000; or |
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(2) two percent of the amount of franchise tax due for |
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the report before the application of any other applicable credits. |
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(b) The total credit claimed on a report may not exceed the |
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amount of franchise tax due for the report after application of any |
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other applicable credits. |
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Sec. 171.554. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the report |
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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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(c) The comptroller may require a taxable entity to submit |
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with an application any information the comptroller determines is |
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necessary to determine whether the taxable entity qualifies for the |
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credit under Section 171.552. |
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Sec. 171.555. RULES. The comptroller shall adopt rules |
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necessary to implement and administer this subchapter. |
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SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by |
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this Act, applies only to a report originally due on or after |
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January 1, 2024. |
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SECTION 3. This Act takes effect January 1, 2024. |