84R983 BEF-F
By: Davis of Harris H.B. No. 605
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for taxable entities that pay
employees during jury selection or jury service.
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 PAYING EMPLOYEE ABSENT FOR JURY
SELECTION OR JURY SERVICE
Sec. 171.951. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions and
limitations provided by this subchapter against the tax imposed
under this chapter.
Sec. 171.952. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if the taxable entity pays at
least one employee the employee's regular salary or regular daily
wage for:
(1) each day or fraction of each day the employee is
absent from work to attend jury selection or jury service if the
employee is absent five days or less; or
(2) at least five days if the employee is absent from
work more than five days to attend jury selection or jury service.
Sec. 171.953. AMOUNT; LIMITATIONS. (a) The amount of the
credit is equal to 15 percent of the amount of franchise tax due,
after any other applicable tax credits, for the privilege period.
(b) A taxable entity may claim a credit under this
subchapter against the tax owed for a privilege period only if the
first day of an employee's period of absence qualifying under
Section 171.952 is during the privilege period. A taxable entity
may not claim a credit under this subchapter against the tax owed
for more than one privilege period for any period of absence
described by Section 171.952.
(c) A taxable entity may not convey, assign, or transfer a
credit 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. 171.954. APPLICATION FOR CREDIT. 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.
Sec. 171.955. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2016.