Texas House Bill HB4247

Texas 2017 - 85th Regular

Caption

Relating to franchise tax credits for small businesses that create quality jobs.

Impact

The enactment of HB 4247 will have a notable impact on state law regarding tax incentives for small businesses. By defining eligibility criteria, wage requirements, and credit calculations, the bill seeks to enhance job availability in areas with high unemployment. This could lead to a more favorable business environment and might alleviate some economic disparities existing across different regions of Texas. The bill could also lead to increased overall tax revenues if successful in its goal to generate jobs, provided that the growth is carefully monitored and reported on by the state comptroller as mandated.

Summary

House Bill 4247 focuses on providing franchise tax credits to small businesses that create new qualifying jobs in Texas. This legislation aims to stimulate job growth, particularly in the manufacturing sector, by incentivizing small businesses to hire more employees under certain wage requirements. The bill defines qualifying jobs and sets forth guidelines on how businesses can qualify for these tax credits based on the number of new positions created and the wages offered. The credits are particularly structured to assist small businesses that meet specific criteria, thereby promoting economic development across Texas.

Contention

However, there may be points of contention around the bill's specific requirements for qualifying jobs and impacts on state revenues. Some critics could argue that the parameters for defining a 'qualified small business' might inadvertently exclude businesses that do not fit neatly into these criteria, thus limiting the intended benefits of the tax credits. Additionally, emphasis on higher wage standards compared to regional norms could pose challenges for small or newly established businesses that may struggle to compete with larger firms when it comes to wage offerings. Legislative discussions may highlight these concerns as stakeholders assess the potential long-term implications of such tax credit systems.