85R13003 GRM-F
By: Anderson of Dallas H.B. No. 2961
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain payments from total revenue
for purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011, Tax Code, is amended by adding
Subsection (y) to read as follows:
(y) A taxable entity that is primarily engaged in the
business of information technology staffing shall exclude from its
total revenue, to the extent included under Subsection (c)(1)(A),
(c)(2)(A), or (c)(3), subcontracting payments made under a contract
or subcontract entered into by the taxable entity to provide
services, labor, or materials in connection with the actual or
proposed design of software or the provision of information
technology services.
SECTION 2. Section 171.1011(y), Tax Code, as added by 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, 2018.