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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 employs |
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certain former offenders. |
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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 N to read as follows: |
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SUBCHAPTER N. TAX CREDIT FOR EMPLOYERS WHO HIRE FORMER OFFENDERS |
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Sec. 171.701. DEFINITION. In this subchapter, "former |
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offender" means a person who was convicted of a state or federal |
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felony offense and incarcerated as a result of that conviction. The |
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term includes a person who was incarcerated as a result of a |
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violation of the conditions of parole or mandatory supervision |
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related to the conviction. |
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Sec. 171.702. 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. 171.703. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if the taxable entity: |
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(1) employs a former offender within 12 months of the |
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former offender's release from the offender's first term of |
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incarceration for at least 40 hours of work per week; and |
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(2) pays the former offender a wage that, when |
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computed as an hourly wage, meets or exceeds the federal minimum |
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wage established under Section 6, Fair Labor Standards Act of 1938 |
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(29 U.S.C. Section 206). |
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Sec. 171.704. AMOUNT OF CREDIT. A taxable entity may claim |
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a credit on a report in the amount of: |
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(1) $3,000 for each former offender whose first |
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anniversary of employment by the taxable entity occurs during the |
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period covered by the report, if the requirements of Section |
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171.703 are met at all times during the former offender's first year |
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of employment by the taxable entity; |
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(2) $2,000 for each former offender whose second |
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anniversary of employment by the taxable entity occurs during the |
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period covered by the report, if requirements of Section 171.703 |
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are met at all times during the former offender's second year of |
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employment by the taxable entity; and |
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(3) $1,000 for each former offender whose third |
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anniversary of employment by the taxable entity occurs during the |
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period covered by the report, if the requirements of Section |
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171.703 are met at all times during the former offender's third year |
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of employment by the taxable entity. |
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Sec. 171.705. 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 which the credit is claimed. |
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(b) The comptroller shall prescribe the form and method of |
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applying for a credit under this section. A taxable entity must use |
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the form and method prescribed by the comptroller to apply for the |
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credit. |
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Sec. 171.706. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable |
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entity may not convey, assign, or transfer the credit allowed under |
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this subchapter to another taxable entity unless substantially all |
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of the assets of the taxable entity are conveyed, assigned, or |
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transferred in the same transaction. |
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Sec. 171.707. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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SECTION 2. 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 3. This Act takes effect January 1, 2024. |