83R8196 KLA-D
By: Herrero H.B. No. 1835
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for wages paid to graduates of
certain institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter P to read as follows:
SUBCHAPTER P. TAX CREDIT FOR WAGES PAID TO GRADUATES
OF CERTAIN INSTITUTIONS OF HIGHER EDUCATION
Sec. 171.801. DEFINITION. In this subchapter, "public or
private institution of higher education" has the meaning assigned
by Section 61.801, Education Code.
Sec. 171.802. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions provided
by this subchapter against the tax imposed under this chapter.
Sec. 171.803. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter for each employee who:
(1) is a graduate of a public or private institution of
higher education at the time the employee is hired if the employee
attended a campus of that institution that is located in the same
county as the county in which the employee performs the employee's
primary job functions; or
(2) graduates from a public or private institution of
higher education during the time the employee is employed with the
taxable entity if the employee attended a campus of that
institution that is located in the same county as the county in
which the employee performs the employee's primary job functions.
Sec. 171.804. AMOUNT; LIMITATIONS. (a) The amount of the
credit is 10 percent of the wages paid by the taxable entity for
each employee described by Section 171.803.
(b) A taxable entity may claim the credit only for wages
paid to the employee described by Section 171.803:
(1) for a position located or based in this state; and
(2) after the employee graduates from the public or
private institution of higher education.
Sec. 171.805. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the tax
report for the period for which the credit is claimed.
(b) The comptroller shall promulgate a form for the
application for the credit. A taxable entity must use the form in
applying for the credit.
Sec. 171.806. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
taxable entity may claim a credit under this subchapter for wages
paid during an accounting period only against the tax owed for the
corresponding privilege period.
SECTION 2. A taxable entity may claim the credit under
Subchapter P, Chapter 171, Tax Code, as added by this Act, only for
any wages paid or incurred on or after the effective date of this
Act and only on a franchise tax report due under Chapter 171, Tax
Code, on or after January 1, 2014.
SECTION 3. This Act takes effect January 1, 2014.