| 1 | 1 | | 81R4943 BEF-D |
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| 2 | 2 | | By: Bolton H.B. No. 1122 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the amount of the franchise tax incentive for certain |
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| 8 | 8 | | small employers that provide health care benefits to employees. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 171.1013(b-1), Tax Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (b-1) This subsection applies to a taxable entity that is a |
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| 13 | 13 | | small employer, as that term is defined by Section 1501.002, |
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| 14 | 14 | | Insurance Code, and that has not provided health care benefits to |
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| 15 | 15 | | any of its employees in the calendar year preceding the beginning |
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| 16 | 16 | | date of its reporting period. Subject to Section 171.1014, a |
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| 17 | 17 | | taxable entity to which this subsection applies that elects to |
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| 18 | 18 | | subtract compensation for the purpose of computing its taxable |
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| 19 | 19 | | margin under Section 171.101 may subtract health care benefits as |
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| 20 | 20 | | provided under Subsection (b) and may also subtract: |
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| 21 | 21 | | (1) for the first 12-month period on which margin is |
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| 22 | 22 | | based and in which the taxable entity provides health care benefits |
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| 23 | 23 | | to all of its employees, an additional amount equal to 75 [50] |
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| 24 | 24 | | percent of the cost of health care benefits provided to its |
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| 25 | 25 | | employees for that period; [and] |
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| 26 | 26 | | (2) for the second 12-month period on which margin is |
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| 27 | 27 | | based and in which the taxable entity provides health care benefits |
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| 28 | 28 | | to all of its employees, an additional amount equal to 50 [25] |
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| 29 | 29 | | percent of the cost of health care benefits provided to its |
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| 30 | 30 | | employees for that period; and |
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| 31 | 31 | | (3) for the third 12-month period on which margin is |
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| 32 | 32 | | based and in which the taxable entity provides health care benefits |
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| 33 | 33 | | to all of its employees, an additional amount equal to 25 percent of |
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| 34 | 34 | | the cost of health care benefits provided to its employees for that |
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| 35 | 35 | | period. |
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| 36 | 36 | | SECTION 2. This Act applies only to a report originally due |
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| 37 | 37 | | on or after the effective date of this Act. |
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| 38 | 38 | | SECTION 3. This Act takes effect January 1, 2010. |
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