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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements for a qualified business participating in |
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the enterprise zone program during a certain period. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 2303, Government Code, is |
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amended by adding Section 2303.499 to read as follows: |
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Sec. 2303.499. CERTAIN REQUIREMENTS WAIVED DURING COVID |
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RELIEF PERIOD. (a) In this section, "COVID relief period" means |
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the period beginning March 1, 2020, and ending December 31, 2021. |
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(b) Notwithstanding Section 2303.003(7)(C) or any other |
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law, the requirement that an employee perform at least 50 percent of |
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the person's service for the business at the qualified business |
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site to be a "qualified employee" is waived for an annual |
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certification or job retention period that includes the COVID |
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relief period. |
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(c) A qualified business in compliance with this chapter |
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before the COVID relief period that is eligible for a waiver under |
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Subsection (b) may elect to withdraw its project or activity from |
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designation as an enterprise project by December 31, 2023. A |
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qualified business that withdraws its enterprise project |
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designation under this subsection is considered eligible for any |
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refund of state taxes under Section 2303.504 approved for the COVID |
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relief period, notwithstanding the requirements for meeting the |
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definition of a new permanent job under Section 2303.401(1)(C) or a |
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retained job under Section 2303.401(2)(C). |
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(d) This section expires December 31, 2030. |
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SECTION 2. Section 151.429, Tax Code, is amended by adding |
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Subsection (g-1) to read as follows: |
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(g-1) The comptroller shall waive the requirements of |
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Subsection (g) for a qualified business that did not meet the |
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requirement that a qualified employee perform at least 50 percent |
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of the person's service for the business at the qualified business |
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site, as defined by Section 2303.003, at any time during the period |
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beginning March 1, 2020, and ending December 31, 2021. This |
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subsection expires December 31, 2030. |
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SECTION 3. Section 2303.499, Government Code, and Section |
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151.429(g-1), Tax Code, as added by this Act, apply to any audit by |
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the comptroller of whether an enterprise project is eligible for a |
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tax refund under Section 151.429, Tax Code, that is not finally |
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completed before the effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |