Texas 2017 - 85th Regular

Texas House Bill HB2833 Compare Versions

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

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1	1	85R5095 ADM-F
2	2	By: Oliveira H.B. No. 2833
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a tax refund or 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. Section 111.109, Tax Code, is amended to read as
11	11	follows:
12	12	Sec. 111.109. TAX REFUND FOR WAGES PAID TO CERTAIN
13	13	EMPLOYEES [EMPLOYEE RECEIVING AID TO FAMILIES WITH DEPENDENT
14	14	CHILDREN]. (a) In this section:
15	15	(1) "Taxable entity" has the meaning assigned by
16	16	Section 171.0002.
17	17	(2) "Wages" has the meaning assigned by Section
18	18	171.9261.
19	19	(b) This section applies only to a person that is not a
20	20	taxable entity or that is a taxable entity but does not owe any tax
21	21	for a regular annual period because of the application of Section
22	22	171.002(d)(2).
23	23	(c) Subject to the limitations and conditions prescribed by
24	24	this section, a person to which this section applies is entitled to
25	25	a refund of each tax the person paid to this state that is
26	26	administered by the comptroller the revenue of which is not
27	27	constitutionally dedicated and all or part of which is deposited to
28	28	the credit of the general revenue fund.
29	29	(d) A person may receive a refund under this section only if
30	30	the person:
31	31	(1) paid or incurred wages for an employee who meets
32	32	the requirements under Section 171.9263(a);
33	33	(2) requests and receives in accordance with Section
34	34	171.9264 certification from the Texas Workforce Commission that the
35	35	employee meets the requirements under Section 171.9263(a);
36	36	(3) files an application with the comptroller for the
37	37	refund using a form promulgated by the comptroller; and
38	38	(4) as a taxable entity, has not claimed a credit in
39	39	relation to those wages on a franchise tax report under Subchapter
40	40	W, Chapter 171.
41	41	(e) The amount of the refund to which a person is entitled in
42	42	relation to each employee is equal to the amount prescribed by
43	43	Section 171.9265(a) or (b), as appropriate.
44	44	(f) The total refund to which a person is entitled during a
45	45	calendar year may not exceed the total amount of taxes described by
46	46	Subsection (c) that the person paid to the state during that
47	47	calendar year, after any other applicable credits.
48	48	(g) A person may not convey, assign, or transfer the right
49	49	to a refund allowed under this section to another person unless all
50	50	of the assets of the person, or of a discrete unit of the person that
51	51	paid or incurred the wages, are sold, conveyed, assigned, or
52	52	transferred in the same transaction or in a related transaction, to
53	53	a person that directly or indirectly owns, controls, or otherwise
54	54	directs, wholly or partly, an interest in the person from which the
55	55	right to the refund is conveyed, assigned, or transferred.
56	56	(h) The comptroller shall adopt rules necessary to
57	57	administer this section [The comptroller shall issue a refund for a
58	58	tax paid by a person to this state in the amount of a tax refund
59	59	voucher issued by the Texas Workforce Commission under Subchapter
60	60	H, Chapter 301, Labor Code, subject to the provisions of that
61	61	subchapter].
62	62	SECTION 2. Chapter 171, Tax Code, is amended by adding
63	63	Subchapter W to read as follows:
64	64	SUBCHAPTER W. TAX CREDIT FOR WAGES PAID TO CERTAIN EMPLOYEES
65	65	Sec. 171.9261. DEFINITIONS. In this subchapter:
66	66	(1) "Commission" means the Texas Workforce
67	67	Commission.
68	68	(2) "Wages" means payments described by Sections
69	69	51(c)(1), (2), and (3), Internal Revenue Code of 1986.
70	70	Sec. 171.9262. ENTITLEMENT TO CREDIT. A taxable entity is
71	71	entitled to a credit in the amount and under the conditions provided
72	72	by this subchapter against the tax imposed under this chapter.
73	73	Sec. 171.9263. QUALIFICATION. (a) A taxable entity
74	74	qualifies for a credit under this subchapter for the wages paid or
75	75	incurred by the taxable entity for an employee only if the
76	76	commission certifies under Section 171.9264 that the employee is:
77	77	(1) a resident of this state; and
78	78	(2) a member of one of the following federal work
79	79	opportunity tax credit targeted groups:
80	80	(A) a qualified IV-A recipient, as defined by
81	81	Section 51(d)(2), Internal Revenue Code of 1986, in effect for the
82	82	federal tax year beginning January 1, 2018, and any regulations
83	83	adopted under that code applicable to that period;
84	84	(B) a qualified veteran, as defined by Section
85	85	51(d)(3), Internal Revenue Code of 1986, in effect for the federal
86	86	tax year beginning January 1, 2018, and any regulations adopted
87	87	under that code applicable to that period;
88	88	(C) a qualified supplemental nutrition
89	89	assistance program benefits recipient, as defined by Section
90	90	51(d)(8), Internal Revenue Code of 1986, in effect for the federal
91	91	tax year beginning January 1, 2018, and any regulations adopted
92	92	under that code applicable to that period; or
93	93	(D) a long-term family assistance recipient, as
94	94	defined by Section 51(d)(10), Internal Revenue Code of 1986, in
95	95	effect for the federal tax year beginning January 1, 2018, and any
96	96	regulations adopted under that code applicable to that period.
97	97	(b) A taxable entity is not eligible for a credit on a report
98	98	against the tax imposed under this chapter for wages paid or
99	99	incurred during the period on which the report is based if the
100	100	taxable entity, or a member of the combined group if the taxable
101	101	entity is a combined group, received a refund in relation to those
102	102	wages under Section 111.109.
103	103	Sec. 171.9264. CERTIFICATION BY COMMISSION. (a) A taxable
104	104	entity must request certification from the commission for each
105	105	employee not later than the 28th day after the date the employee
106	106	begins employment with the taxable entity.
107	107	(b) The commission shall issue a certification to a taxable
108	108	entity for each employee the commission determines meets the
109	109	requirements under Section 171.9263(a).
110	110	(c) The commission shall forward each certification to the
111	111	comptroller.
112	112	Sec. 171.9265. AMOUNTS; LIMITATION. (a) The amount of the
113	113	credit in relation to each employee described by Section
114	114	171.9263(a)(2)(A), (B), or (D) is equal to 20 percent of the first
115	115	$10,000 in total wages paid or incurred by the taxable entity for
116	116	that employee beginning on the date the employee begins employment
117	117	and ending on the anniversary of that date.
118	118	(b) The amount of the credit in relation to each employee
119	119	described by Section 171.9263(a)(2)(C) is equal to 10 percent of
120	120	the first $10,000 in total wages paid or incurred by the taxable
121	121	entity for that employee beginning on the date the employee begins
122	122	employment and ending on the anniversary of that date.
123	123	(c) The total credit claimed under this subchapter for a
124	124	report, including the amount of any carryforward credit under
125	125	Section 171.9266, may not exceed the amount of tax due for the
126	126	report after any other applicable credits.
127	127	Sec. 171.9266. CARRYFORWARD. (a) If a taxable entity is
128	128	eligible for a credit that exceeds the limitation under Section
129	129	171.9265(c), the taxable entity may carry the unused credit forward
130	130	for not more than five consecutive reports.
131	131	(b) A carryforward is considered the remaining portion of a
132	132	credit that cannot be claimed in the current year because of the
133	133	limitation under Section 171.9265(c).
134	134	Sec. 171.9267. APPLICATION FOR CREDIT. (a) A taxable
135	135	entity must apply for a credit under this subchapter on or with the
136	136	tax report for the period for which the credit is claimed.
137	137	(b) The comptroller shall promulgate a form for the
138	138	application for the credit. A taxable entity must use the form in
139	139	applying for the credit.
140	140	Sec. 171.9268. ASSIGNMENT PROHIBITED. A taxable entity may
141	141	not convey, assign, or transfer a credit allowed under this
142	142	subchapter to another entity unless all of the assets of the taxable
143	143	entity, or of a discrete unit of the taxable entity that paid or
144	144	incurred the wages, are sold, conveyed, assigned, or transferred in
145	145	the same transaction or in a related transaction, to a taxable
146	146	entity that directly or indirectly owns, controls, or otherwise
147	147	directs, wholly or partly, an interest in the taxable entity from
148	148	which the credit is conveyed, assigned, or transferred.
149	149	Sec. 171.9269. RULES. The comptroller and the commission
150	150	shall adopt rules necessary to administer this subchapter.
151	151	SECTION 3. Section 19.011(a), Education Code, is amended to
152	152	read as follows:
153	153	(a) In order to achieve the goals stated in Section 19.003,
154	154	the district with the cooperation of the Health and Human Services
155	155	Commission, the Texas Workforce Investment Council, the Texas
156	156	Workforce Commission, the Texas Economic Development and Tourism
157	157	Office, and the department shall provide persons confined or
158	158	imprisoned in the department:
159	159	(1) information from local workforce [and]
160	160	development boards on job training and employment referral
161	161	services; and
162	162	(2) information on the tax refund [voucher] program
163	163	under Section 111.109, Tax Code, and the franchise tax credit
164	164	program under Subchapter W, Chapter 171, Tax [H, Chapter 301,
165	165	Labor] Code.
166	166	SECTION 4. Section 301.0671, Labor Code, is amended to read
167	167	as follows:
168	168	Sec. 301.0671. FEDERAL WORK OPPORTUNITY TAX CREDIT AND
169	169	STATE TAX REFUND OR CREDIT FOR CERTAIN EMPLOYERS. (a) The
170	170	commission is the lead agency in promoting awareness of the federal
171	171	work opportunity tax credit program and the state tax refund or
172	172	credit for employers under Section 111.109, Tax Code, and
173	173	Subchapter W, Chapter 171, Tax Code [H].
174	174	(b) The commission, in coordination with the comptroller's
175	175	office and the Health and Human Services Commission [Texas
176	176	Department of Human Services], shall develop and distribute
177	177	educational materials designed to increase awareness of the tax
178	178	[credit and tax] refund and credits described by Subsection (a) [to
179	179	encourage employers to hire recipients of the financial assistance
180	180	program for persons with dependent children under Chapter 31, Human
181	181	Resources Code].
182	182	SECTION 5. Section 306.007(a), Labor Code, is amended to
183	183	read as follows:
184	184	(a) To assist in the reintegration into the labor force of
185	185	persons formerly sentenced to the correctional institutions
186	186	division or committed to the Texas Juvenile Justice Department, the
187	187	commission through Project RIO shall provide:
188	188	(1) to those persons:
189	189	(A) information from local workforce development
190	190	boards on job training and employment referral services;
191	191	(B) information from the Department of State
192	192	Health Services on substance abuse treatment services;
193	193	(C) information from the Texas Department of
194	194	Housing and Community Affairs on housing services;
195	195	(D) information from the Texas Veterans
196	196	Commission on services for veterans; and
197	197	(E) information on the tax refund program under
198	198	Section 111.109, Tax Code, and the franchise tax credit program
199	199	[voucher programs] under Subchapter W, Chapter 171, Tax Code [H,
200	200	Chapter 301]; and
201	201	(2) to the employers and potential employers of those
202	202	persons:
203	203	(A) information from the Texas Economic
204	204	Development and Tourism Office on the enterprise zone program; and
205	205	(B) information from local workforce development
206	206	boards on services listed in Section 2308.304, Government Code.
207	207	SECTION 6. Subchapter H, Chapter 301, Labor Code, is
208	208	repealed.
209	209	SECTION 7. The repeal of Subchapter H, Chapter 301, Labor
210	210	Code, by this Act does not affect an eligible person's right to
211	211	claim a refund of state taxes that was established under Subchapter
212	212	H, Chapter 301, Labor Code, before the effective date of this Act.
213	213	An eligible person's right to claim a refund of state taxes that was
214	214	established under Subchapter H, Chapter 301, Labor Code, before the
215	215	effective date of this Act is governed by the law in effect on the
216	216	date the right to claim the refund was established, and the former
217	217	law is continued in effect for that purpose.
218	218	SECTION 8. This Act applies only to a report originally due
219	219	on or after the effective date of this Act.
220	220	SECTION 9. This Act takes effect January 1, 2018.