Texas House Bill HB2833

Texas 2017 - 85th Regular

Caption

Relating to a tax refund or credit for wages paid to certain employees.

Impact

The proposed enactment of HB2833 would affect the existing tax law by integrating provisions for wage credits and refunds under the Texas Tax Code, specifically modifying 111.109 and introducing Subchapter W. This change aims to provide financial relief and incentives for businesses that promote hiring within those target demographics by decreasing their tax burdens. By abstracting previous programs into a more comprehensive tax credit structure, the bill seeks to encourage employers to take a chance on hiring individuals who may face barriers to employment due to prior conditions or socioeconomic status.

Summary

House Bill 2833 proposes a new tax refund or credit mechanism for employers who pay wages to specific employees, particularly those from low-income backgrounds or targeted groups defined by federal tax credits. This bill amends the Tax Code to establish a framework for providing refunds to those businesses that employ verified individuals qualified under state and federal criteria. These criteria include individuals receiving assistance from programs such as SNAP, veterans, and those with past criminal records seeking reintegration into the workforce.

Contention

While supporters of HB2833 argue that fostering a more inclusive workforce will yield societal benefits and economic growth, some opponents might see issues surrounding the funded aspect of such tax credits; concerns arise about how such programs might be perceived in terms of government spending and the balance between incentivizing businesses and potentially creating dependency on state assistance programs. Additionally, debates might emerge over eligibility criteria and the potential impact on small businesses who may find compliance burdensome in a complicated tax credit application process.