81R4943 BEF-D
By: Bolton H.B. No. 1122
A BILL TO BE ENTITLED
AN ACT
relating to the amount of the franchise tax incentive for certain
small employers that provide health care benefits to employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1013(b-1), Tax Code, is amended to
read as follows:
(b-1) This subsection applies to a taxable entity that is a
small employer, as that term is defined by Section 1501.002,
Insurance Code, and that has not provided health care benefits to
any of its employees in the calendar year preceding the beginning
date of its reporting period. Subject to Section 171.1014, a
taxable entity to which this subsection applies that elects to
subtract compensation for the purpose of computing its taxable
margin under Section 171.101 may subtract health care benefits as
provided under Subsection (b) and may also subtract:
(1) for the first 12-month period on which margin is
based and in which the taxable entity provides health care benefits
to all of its employees, an additional amount equal to 75 [50]
percent of the cost of health care benefits provided to its
employees for that period; [and]
(2) for the second 12-month period on which margin is
based and in which the taxable entity provides health care benefits
to all of its employees, an additional amount equal to 50 [25]
percent of the cost of health care benefits provided to its
employees for that period; and
(3) for the third 12-month period on which margin is
based and in which the taxable entity provides health care benefits
to all of its employees, an additional amount equal to 25 percent of
the cost of health care benefits provided to its employees for that
period.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.