81R9268 KLA-D
By: Harper-Brown H.B. No. 2943
A BILL TO BE ENTITLED
AN ACT
relating to a temporary franchise tax discount for job creation and
retention.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 171, Tax Code, is amended
by adding Section 171.0024 to read as follows:
Sec. 171.0024. TEMPORARY DISCOUNT FROM TAX LIABILITY FOR
JOB CREATION AND RETENTION. (a) This section applies only to a
report originally due on or after January 1, 2010, and before
January 1, 2011.
(b) A taxable entity is entitled to a discount of 25 percent
of the tax imposed under this chapter that the taxable entity is
required to pay after determining its taxable margin under Section
171.101, applying the appropriate rate of the tax under Section
171.002(a) or (b), and subtracting any other allowable credits or
discounts, including a discount under Section 171.0021, to enable
the taxable entity to create and retain jobs for residents of this
state.
(c) Notwithstanding Section 171.1016(c), a taxable entity
that elects to pay the tax as provided by Section 171.1016 is
entitled to a discount of 25 percent of the tax calculated under
that section for the purposes specified by Subsection (b).
(d) A taxable entity the tax liability of which is
discounted under this section is presumed to have used the amount by
which that liability was discounted for job creation and retention
purposes. The comptroller may not require the taxable entity to
provide documentation or any other proof regarding the use of that
amount.
(e) This section expires January 1, 2012.
SECTION 2. This Act takes effect January 1, 2010.