85R3169 GRM-D
By: Guillen H.B. No. 86
A BILL TO BE ENTITLED
AN ACT
relating to providing a sales and use tax refund or franchise tax
credit for businesses that employ former offenders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
by adding Section 151.4292 to read as follows:
Sec. 151.4292. TAX REFUND FOR EMPLOYERS WHO HIRE FORMER
OFFENDERS. (a) In this section, "former offender" means a person
who:
(1) received a sentence that included imprisonment;
and
(2) was subsequently released from the imprisonment,
including a release on parole or to mandatory supervision and a
release following discharge of the defendant's sentence.
(b) Except as provided by Subsection (c), a person is
eligible for a refund of 15 percent of the taxes paid under this
chapter during a reporting period if the person employs at least one
former offender in a full-time employment position located or based
in this state during that entire reporting period.
(c) A person is not eligible for a refund under this section
during a reporting period if the person will, as a taxable entity as
defined by Section 171.0002 or as a member of a combined group that
is a taxable entity, claim a credit under Subchapter O-1, Chapter
171, on a franchise tax report covering that reporting period.
(d) A person must apply to the comptroller to receive a
refund under this section.
SECTION 2. Chapter 171, Tax Code, is amended by adding
Subchapter O-1 to read as follows:
SUBCHAPTER O-1. TAX CREDIT FOR EMPLOYERS WHO HIRE FORMER OFFENDERS
Sec. 171.781. DEFINITION. In this subchapter, "former
offender" means a person who:
(1) received a sentence that included imprisonment;
and
(2) was subsequently released from the imprisonment,
including a release on parole or to mandatory supervision and a
release following discharge of the defendant's sentence.
Sec. 171.782. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions provided
by this subchapter against the tax imposed under this chapter.
Sec. 171.783. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if the taxable entity employs at
least one former offender in a full-time employment position
located or based in this state during the entire period on which the
report is based.
Sec. 171.784. INELIGIBILITY FOR CREDIT FOR CERTAIN PERIODS.
A taxable entity is not eligible for a credit on a report if the
taxable entity, or a member of the combined group if the taxable
entity is a combined group, received, for taxes paid under Chapter
151 during the period on which the report is based, a refund under
Section 151.4292.
Sec. 171.785. AMOUNT; LIMITATIONS. The amount of the
credit under this subchapter is equal to 15 percent of the amount of
franchise tax due for the report after the application of all other
applicable tax credits.
Sec. 171.786. APPLICATION FOR CREDIT. (a) 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.
(b) The comptroller shall promulgate a form for the
application for the credit. A taxable entity must use the form in
applying for the credit.
Sec. 171.787. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
taxable entity may claim a credit under this subchapter on a report
only in connection with the employment of a former offender during
the accounting period on which the report is based.
SECTION 3. Subchapter O-1, Chapter 171, Tax Code, as added
by this Act, applies only to a report originally due on or after the
effective date of this Act.
SECTION 4. This Act takes effect January 1, 2018.