Texas 2015 - 84th Regular

Texas House Bill HB3305 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R10829 CBH-F
2	2	By: Oliveira H.B. No. 3305
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a franchise tax credit for wages paid to certain
8	8	employees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 171, Tax Code, is amended by adding
11	11	Subchapter R to read as follows:
12	12	SUBCHAPTER R. TAX CREDIT FOR WAGES PAID TO CERTAIN EMPLOYEES
13	13	Sec. 171.871. DEFINITIONS. In this subchapter:
14	14	(1) "Commission" means the Texas Workforce
15	15	Commission.
16	16	(2) "Wages" means payments described by Sections
17	17	51(c)(1), (2), and (3), Internal Revenue Code.
18	18	Sec. 171.872. ENTITLEMENT TO CREDIT. A taxable entity is
19	19	entitled to a credit in the amount and under the conditions provided
20	20	by this subchapter against the tax imposed under this chapter.
21	21	Sec. 171.873. QUALIFICATION. A taxable entity qualifies
22	22	for a credit under this subchapter for the wages paid or incurred by
23	23	the taxable entity for the services of each employee who:
24	24	(1) is a resident of this state; and
25	25	(2) at the time the person is hired by the taxable
26	26	entity:
27	27	(A) has been issued a document by the commission
28	28	stating that the individual is a Qualified IV-A recipient as
29	29	defined by 26 U.S.C. Section 51(d)(2) or is otherwise a member of a
30	30	family that receives financial assistance and services under
31	31	Chapter 31 or 34, Human Resources Code;
32	32	(B) served on active duty in the United States
33	33	armed forces and was discharged or released from active duty after
34	34	September 11, 2001;
35	35	(C) is at least 18 years of age but younger than
36	36	25 years of age, is unemployed, and has not been enrolled in an
37	37	educational institution for at least six months;
38	38	(D) had exhausted the person's unemployment
39	39	compensation benefits at any time during the preceding 18 months
40	40	and is unemployed; or
41	41	(E) is unemployed and receiving unemployment
42	42	compensation benefits.
43	43	Sec. 171.874. CONFIRMATION OF ELIGIBILITY. (a) A taxable
44	44	entity is not entitled to the credit under this subchapter for wages
45	45	paid or incurred for the services of an employee unless the taxable
46	46	entity requests and receives a confirmation from the commission
47	47	that the employee meets the requirements under Section 171.873.
48	48	(b) A taxable entity must request confirmation for each
49	49	employee for which the person intends to claim the credit not later
50	50	than the 60th day after the date the employee begins employment with
51	51	the taxable entity.
52	52	(c) The commission shall promulgate an online form that a
53	53	taxable entity must use to request the certification.
54	54	(d) A taxable entity is considered to have received the
55	55	confirmation that the employee meets the requirements under Section
56	56	171.873 if the taxable entity does not receive from the commission a
57	57	confirmation or a denial of confirmation not later than the 61st day
58	58	after the date the taxable entity submitted the original request
59	59	for the confirmation.
60	60	(e) The commission shall forward each confirmation to the
61	61	comptroller.
62	62	(f) The Health and Human Services Commission shall provide
63	63	to the commission information necessary for the commission to
64	64	confirm that an employee meets the requirements under Section
65	65	171.873.
66	66	Sec. 171.875. AMOUNT; LIMITATIONS. (a) The amount of the
67	67	credit in relation to each employee is equal to the lesser of
68	68	$10,000 or 20 percent of the wages paid or incurred by the taxable
69	69	entity for the services of that employee beginning on the date the
70	70	employee begins employment and ending on the anniversary of that
71	71	date.
72	72	(b) The total credit claimed under this subchapter for a
73	73	report, including the amount of any carryforward credit under
74	74	Section 171.876, may not exceed the amount of franchise tax due for
75	75	the report after any other applicable credits.
76	76	Sec. 171.876. CARRYFORWARD. (a) If a taxable entity is
77	77	eligible for a credit that exceeds the limitation under Section
78	78	171.875(b), the taxable entity may carry the unused credit forward
79	79	for not more than five consecutive reports.
80	80	(b) A carryforward is considered the remaining portion of a
81	81	credit that cannot be claimed in the current year because of the
82	82	limitation under Section 171.875(b).
83	83	Sec. 171.877. APPLICATION FOR CREDIT. (a) A taxable entity
84	84	must apply for a credit under this subchapter on or with the tax
85	85	report for the period for which the credit is claimed.
86	86	(b) The comptroller shall promulgate a form for the
87	87	application for the credit. A taxable entity must use the form in
88	88	applying for the credit.
89	89	Sec. 171.878. ASSIGNMENT PROHIBITED. A taxable entity may
90	90	not convey, assign, or transfer a credit allowed under this
91	91	subchapter to another entity unless all of the assets of the taxable
92	92	entity, or a discrete unit of the taxable entity that paid or
93	93	incurred the wages, are sold, conveyed, assigned, or transferred in
94	94	the same transaction or in a related transaction, to a taxable
95	95	entity that directly or indirectly owns, controls, or otherwise
96	96	directs, wholly or partly, an interest in the taxable entity from
97	97	which the credit is conveyed, assigned, or transferred.
98	98	Sec. 171.879. RULES. The comptroller and the commission
99	99	shall adopt rules necessary to administer this subchapter.
100	100	SECTION 2. Section 19.011(a), Education Code, is amended to
101	101	read as follows:
102	102	(a) In order to achieve the goals stated in Section 19.003,
103	103	the district with the cooperation of the Health and Human Services
104	104	Commission, the Texas Workforce Investment Council, the Texas
105	105	Workforce Commission, the Texas Economic Development and Tourism
106	106	Office, and the department shall provide persons confined or
107	107	imprisoned in the department:
108	108	(1) information from local workforce [and]
109	109	development boards on job training and employment referral
110	110	services; and
111	111	(2) information on the franchise tax credit [refund
112	112	voucher] program under Subchapter R, Chapter 171, Tax [H, Chapter
113	113	301, Labor] Code.
114	114	SECTION 3. Section 301.0671, Labor Code, is amended to read
115	115	as follows:
116	116	Sec. 301.0671. FEDERAL WORK OPPORTUNITY TAX CREDIT AND
117	117	FRANCHISE [STATE] TAX CREDIT [REFUND] FOR CERTAIN EMPLOYERS. (a)
118	118	The commission is the lead agency in promoting awareness of the
119	119	federal work opportunity tax credit program and the franchise
120	120	[state] tax credit [refund] for employers under Subchapter R,
121	121	Chapter 171, Tax Code [H].
122	122	(b) The commission, in coordination with the comptroller's
123	123	office and the Health and Human Services Commission [Texas
124	124	Department of Human Services], shall develop and distribute
125	125	educational materials designed to increase awareness of the tax
126	126	credits [credit and tax refund] described by Subsection (a) to
127	127	encourage employers to hire recipients of the financial assistance
128	128	program [for persons with dependent children] under Chapter 31,
129	129	Human Resources Code.
130	130	SECTION 4. Section 306.007(a), Labor Code, is amended to
131	131	read as follows:
132	132	(a) To assist in the reintegration into the labor force of
133	133	persons formerly sentenced to the correctional institutions
134	134	division or committed to the Texas Juvenile Justice Department
135	135	[Youth Commission], the commission through Project RIO shall
136	136	provide:
137	137	(1) to those persons:
138	138	(A) information from local workforce development
139	139	boards on job training and employment referral services;
140	140	(B) information from the Department of State
141	141	Health Services on substance abuse treatment services;
142	142	(C) information from the Texas Department of
143	143	Housing and Community Affairs on housing services;
144	144	(D) information from the Texas Veterans
145	145	Commission on services for veterans; and
146	146	(E) information on franchise tax credits for
147	147	employers [refund voucher programs] under Subchapter R, Chapter
148	148	171, Tax Code [H, Chapter 301]; and
149	149	(2) to the employers and potential employers of those
150	150	persons:
151	151	(A) information from the Texas Economic
152	152	Development and Tourism Office on the enterprise zone program; and
153	153	(B) information from local workforce development
154	154	boards on services listed in Section 2308.304, Government Code.
155	155	SECTION 5. The following are repealed:
156	156	(1) Subchapter H, Chapter 301, Labor Code; and
157	157	(2) Section 111.109, Tax Code.
158	158	SECTION 6. The repeal of Subchapter H, Chapter 301, Labor
159	159	Code, and Section 111.109, Tax Code, by this Act does not affect an
160	160	eligible person's right to claim a refund of state taxes that was
161	161	established under Subchapter H, Chapter 301, Labor Code, and
162	162	Section 111.109, Tax Code, before the effective date of this Act. An
163	163	eligible person's right to claim a refund of state taxes that was
164	164	established under Subchapter H, Chapter 301, Labor Code, and
165	165	Section 111.109, Tax Code, before the effective date of this Act is
166	166	governed by the law in effect on the date the right to claim the
167	167	refund was established, and the former law is continued in effect
168	168	for that purpose.
169	169	SECTION 7. This Act applies only to a report originally due
170	170	on or after the effective date of this Act.
171	171	SECTION 8. This Act takes effect January 1, 2016.