82R5802 MXM-D
By: Kuempel H.B. No. 3608
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for contributions to programs
for at-risk youth.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter T to read as follows:
SUBCHAPTER T. TAX CREDIT FOR CONTRIBUTIONS TO PROGRAMS FOR
AT-RISK YOUTH
Sec. 171.871. DESCRIPTION OF LOCAL COMMUNITY. (a) The
local community of a taxable entity eligible for a credit under this
subchapter is, except as provided by Subsection (b):
(1) the municipality in which the headquarters of the
taxable entity is located; or
(2) if the headquarters of the taxable entity is not
located in a municipality, the county in which the taxable entity's
headquarters is located.
(b) A taxable entity with a facility that is not located in
the local community described by Subsection (a) may designate its
contribution as originating from that facility. The local
community of a taxable entity that makes this designation is:
(1) the municipality in which the designated facility
is located; or
(2) if the designated facility is not located in a
municipality, the county in which the designated facility is
located.
Sec. 171.872. ELIGIBILITY. A taxable entity is eligible
for a credit against the tax imposed under this chapter in the
amount and under the conditions and limitations provided by this
subchapter.
Sec. 171.873. CONTRIBUTIONS ELIGIBLE FOR CREDIT. (a) A
taxable entity may claim a credit under this subchapter only for a
contribution to a program designated by its local community, as
described by Section 171.871, that provides services described by
Subsection (b) for:
(1) children in at-risk situations and the families of
those children as described by Subchapter D, Chapter 264, Family
Code; or
(2) children who qualify, under criteria developed by
the local community, as at-risk youth and the families of those
children.
(b) Services provided by a program described by Subsection
(a) may include only:
(1) services described by Section 264.302(f), Family
Code; and
(2) other services identified by the local community
relating to:
(A) the education, training, and career
development of at-risk youth; and
(B) the provision of community service by at-risk
youth.
Sec. 171.874. LIMITATIONS ON CREDIT. (a) Subject to the
limitations of this subchapter, the amount of the credit is equal to
the amount of the contribution made by the taxable entity.
(b) The total credit under this subchapter for a report may
not exceed $5,000 of franchise tax due for the report.
(c) A taxable entity may claim a credit under this
subchapter for a contribution made during an accounting period only
against the tax owed for the corresponding reporting period.
Sec. 171.875. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the report
for the period for which the credit is claimed.
(b) The comptroller shall adopt a form for the application
for the credit. A taxable entity must use the form in applying for
the credit.
Sec. 171.876. ASSIGNMENT PROHIBITED. A taxable entity may
not convey, assign, or transfer the credit allowed under this
subchapter to another entity unless all of the assets of the taxable
entity are conveyed, assigned, or transferred in the same
transaction.
Sec. 171.877. LIMITATION ON USE OF QUALIFYING
CONTRIBUTIONS. A local community, as described by Section 171.871,
that receives contributions for which a taxable entity qualifies
for a credit under this subchapter may use those contributions only
for the program designated by the local community to provide
services to at-risk youth described by Section 171.873. The program
may provide services to at-risk youth who do not reside in the local
community.
SECTION 2. (a) This Act applies only to a report due on or
after the effective date of this Act.
(b) A taxable entity may claim a credit under Subchapter T,
Chapter 171, Tax Code, as added by this Act, only for a contribution
made on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2012.