81R6799 JE-D
By: Button H.B. No. 1116
A BILL TO BE ENTITLED
AN ACT
relating to tax incentives for certain businesses for job creation
and retention.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 111, Tax Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. BUSINESS TAX INCENTIVES FOR CERTAIN JOB CREATION AND
RETENTION ACTIVITIES
Sec. 111.401. ENTITLEMENT TO TAX REFUND OR CREDIT. (a) A
qualified business is entitled to a refund of or credit against
state sales and use taxes imposed under Chapter 151 and state
franchise taxes imposed under Chapter 171.
(b) The total amount of the refund or credit a qualified
business claims in a calendar year may not exceed the amount of net
state sales and use taxes and franchise taxes paid by the business,
after any other applicable credit, in the calendar year for which
the refund or credit is requested.
Sec. 111.402. TYPES OF BUSINESSES THAT QUALIFY FOR TAX
REFUND OR CREDIT. A business qualifies for a tax refund or credit
under this subchapter if the total wages and salaries paid in this
state by the business during the calendar year for which the refund
or credit is requested exceed the total wages and salaries paid in
this state during the previous calendar year.
Sec. 111.403. COMPUTATION OF REFUND OR CREDIT. The total
amount of the refund or credit to which a qualifying business is
entitled under this subchapter is computed by:
(1) determining the total wages and salaries paid in
this state by the business during the calendar year for which the
refund or credit is requested;
(2) subtracting from the amount determined under
Subdivision (1) the average total wages and salaries paid in this
state by the business during:
(A) the three calendar years preceding the
calendar year for which the refund or credit is requested, if the
qualifying business was paying wages and salaries in this state
during that period; or
(B) the period preceding the first day of the
calendar year for which the refund or credit is requested and during
which the business was paying wages and salaries in this state, if
the business was paying wages and salaries in this state for less
than three years preceding the first day of the calendar year for
which the refund or credit is requested;
(3) subtracting $200,000 from the amount determined
under Subdivision (2); and
(4) multiplying the result of Subdivisions (1)-(3) by
five percent.
Sec. 111.404. PROCEDURE FOR CLAIMING REFUND OR CREDIT. (a)
An application for a refund or credit must be made to the
comptroller on a form prescribed by the comptroller.
(b) A qualified business must provide to the comptroller any
information the comptroller needs to determine the validity of an
application. The burden of establishing entitlement to and the
value of the refund or credit is on the business.
(c) Except as provided by Subsection (d), a qualified
business must apply for a refund or credit under this subchapter
before August 1 of the year after the calendar year for which the
business requests the refund or credit.
(d) If a business requests a credit against franchise taxes
under this subchapter, the business must claim the credit on or with
the report for the accounting period in which the wages and salaries
are paid.
(e) A refund payable under this subchapter does not earn
interest.
Sec. 111.405. COMPTROLLER POWERS AND DUTIES. (a) The
comptroller shall adopt rules and forms for the administration of
this subchapter.
(b) The comptroller may conduct any audit the comptroller
determines necessary for the enforcement or administration of this
subchapter.
SECTION 2. This Act takes effect January 1, 2010.