86R10862 CJC-D
By: Meza H.B. No. 2460
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 151.4294 to read as follows:
Sec. 151.4294. 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 released from the imprisonment, including a
release on parole or to mandatory supervision and a release
following discharge of the defendant's sentence, at any time during
the five-year period preceding the last day of the calendar year for
which the refund is claimed.
(b) Except as provided by Subsection (c), a person is
eligible for a refund in an amount determined under this subsection
of the taxes the person paid under this chapter on purchases of
taxable items during a calendar year if the person employs at least
one former offender in a full-time employment position located or
based in this state during that entire calendar year. The amount of
the refund is the lesser of:
(1) a dollar amount equal to the product of $3,000 and
the number of former offenders the person employs in the manner
prescribed by this subsection; and
(2) the total amount of the taxes the person paid
during the calendar year.
(c) A person is not eligible for a refund under this section
for a calendar year 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 any part of that year.
(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 released from the imprisonment, including a
release on parole or to mandatory supervision and a release
following discharge of the defendant's sentence, at any time during
the five-year period preceding the last day of the accounting
period for which the credit is claimed.
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 accounting period on which the report is based, a
refund under Section 151.4294.
Sec. 171.785. AMOUNT; LIMITATIONS. (a) Except as provided
by Subsection (b), the amount of the credit under this subchapter is
a dollar amount equal to the product of $3,000 and the number of
former offenders employed by the taxable entity in the manner
prescribed by Section 171.783.
(b) The total credit claimed for a report may not exceed the
amount of franchise tax due for the report after 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, 2020.