| 1 | 1 | | 81R9268 KLA-D |
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| 2 | 2 | | By: Harper-Brown H.B. No. 2943 |
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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 a temporary franchise tax discount for job creation and |
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| 8 | 8 | | retention. |
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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. Subchapter A, Chapter 171, Tax Code, is amended |
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| 11 | 11 | | by adding Section 171.0024 to read as follows: |
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| 12 | 12 | | Sec. 171.0024. TEMPORARY DISCOUNT FROM TAX LIABILITY FOR |
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| 13 | 13 | | JOB CREATION AND RETENTION. (a) This section applies only to a |
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| 14 | 14 | | report originally due on or after January 1, 2010, and before |
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| 15 | 15 | | January 1, 2011. |
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| 16 | 16 | | (b) A taxable entity is entitled to a discount of 25 percent |
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| 17 | 17 | | of the tax imposed under this chapter that the taxable entity is |
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| 18 | 18 | | required to pay after determining its taxable margin under Section |
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| 19 | 19 | | 171.101, applying the appropriate rate of the tax under Section |
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| 20 | 20 | | 171.002(a) or (b), and subtracting any other allowable credits or |
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| 21 | 21 | | discounts, including a discount under Section 171.0021, to enable |
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| 22 | 22 | | the taxable entity to create and retain jobs for residents of this |
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| 23 | 23 | | state. |
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| 24 | 24 | | (c) Notwithstanding Section 171.1016(c), a taxable entity |
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| 25 | 25 | | that elects to pay the tax as provided by Section 171.1016 is |
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| 26 | 26 | | entitled to a discount of 25 percent of the tax calculated under |
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| 27 | 27 | | that section for the purposes specified by Subsection (b). |
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| 28 | 28 | | (d) A taxable entity the tax liability of which is |
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| 29 | 29 | | discounted under this section is presumed to have used the amount by |
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| 30 | 30 | | which that liability was discounted for job creation and retention |
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| 31 | 31 | | purposes. The comptroller may not require the taxable entity to |
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| 32 | 32 | | provide documentation or any other proof regarding the use of that |
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| 33 | 33 | | amount. |
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| 34 | 34 | | (e) This section expires January 1, 2012. |
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| 35 | 35 | | SECTION 2. This Act takes effect January 1, 2010. |
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