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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 |
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participates in the federal electronic verification of employment |
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authorization program. |
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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 PARTICIPATION IN FEDERAL ELECTRONIC |
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VERIFICATION OF EMPLOYMENT AUTHORIZATION PROGRAM |
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Sec. 171.551. DEFINITION. In this subchapter, "E-verify |
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program" has the meaning assigned by Section 673.001, Government |
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Code. |
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Sec. 171.552. 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. 171.553. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity registers |
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with and participates in the E-verify program to verify employee |
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information for a period of at least 12 consecutive months. |
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Sec. 171.554. AMOUNT OF CREDIT; LIMITATION. (a) The amount |
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of the credit for a report is equal to the amount of franchise tax |
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due for the report after applying all other applicable credits. |
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(b) A taxable entity may not claim more than one credit |
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under this subchapter. |
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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 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 171.553. |
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Sec. 171.556. 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 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. |