Texas 2019 - 86th Regular

Texas House Bill HB3208 Compare Versions

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

Old	New	Differences
1	1	86R11027 GRM-D
2	2	By: Kuempel H.B. No. 3208
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to providing a sales and use tax refund or franchise tax
8	8	credit for businesses that employ persons with disabilities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
11	11	by adding Section 151.4293 to read as follows:
12	12	Sec. 151.4293. TAX REFUND FOR EMPLOYERS WHO HIRE PERSONS
13	13	WITH DISABILITIES. (a) In this section, "person with a disability"
14	14	means a person who, at the time of being hired, is at least 18 years
15	15	of age but not older than 62 years of age and:
16	16	(1) has a disability as defined by 42 U.S.C. Section
17	17	12102;
18	18	(2) receives Supplemental Security Income (SSI)
19	19	benefits under 42 U.S.C. Section 1381 et seq. on the basis of
20	20	disability or blindness or Social Security Disability Insurance
21	21	(SSDI) benefits under 42 U.S.C. Section 401 et seq.;
22	22	(3) qualifies for or is receiving vocational
23	23	rehabilitation services provided through the Texas Workforce
24	24	Commission;
25	25	(4) is a veteran as defined by 38 U.S.C. Section 101
26	26	who has suffered at least a 50 percent service-connected disability
27	27	as defined by that section; or
28	28	(5) completes an affidavit that:
29	29	(A) includes:
30	30	(i) the person's full name;
31	31	(ii) the person's address;
32	32	(iii) a copy of the person's driver's
33	33	license, election identification certificate, or personal
34	34	identification card issued by the Department of Public Safety; and
35	35	(iv) the person's signature; and
36	36	(B) is accompanied by a letter from a physician
37	37	that verifies the person's disability.
38	38	(b) Except as provided by Subsection (c), a person is
39	39	eligible for a refund of 15 percent of the taxes imposed on taxable
40	40	items purchased by the person and paid under this chapter during a
41	41	calendar year if during that entire year at least 10 percent of the
42	42	person's employees were persons with disabilities and were employed
43	43	in full-time employment positions that paid at least minimum wage
44	44	and that were located or based in this state.
45	45	(c) A person is not eligible for a refund under this section
46	46	for a calendar year if the person will, as a taxable entity as
47	47	defined by Section 171.0002 or as a member of a combined group that
48	48	is a taxable entity, claim a credit under Subchapter K-1, Chapter
49	49	171, on a franchise tax report covering any portion of that year.
50	50	(d) A person must apply to the comptroller to receive a
51	51	refund under this section.
52	52	SECTION 2. Chapter 171, Tax Code, is amended by adding
53	53	Subchapter K-1 to read as follows:
54	54	SUBCHAPTER K-1. TAX CREDIT FOR EMPLOYERS WHO HIRE PERSONS WITH
55	55	DISABILITIES
56	56	Sec. 171.571. DEFINITION. In this subchapter, "person with
57	57	a disability" has the meaning assigned by Section 151.4293.
58	58	Sec. 171.572. ENTITLEMENT TO CREDIT. A taxable entity is
59	59	entitled to a credit in the amount and under the conditions provided
60	60	by this subchapter against the tax imposed under this chapter.
61	61	Sec. 171.573. QUALIFICATION. A taxable entity qualifies
62	62	for a credit under this subchapter on a report if during the entire
63	63	period on which the report is based at least 10 percent of the
64	64	taxable entity's employees were persons with disabilities and were
65	65	employed in full-time employment positions that paid at least
66	66	minimum wage and that were located or based in this state.
67	67	Sec. 171.574. INELIGIBILITY FOR CREDIT FOR CERTAIN PERIODS.
68	68	A taxable entity is not eligible for a credit on a report if the
69	69	taxable entity, or a member of the combined group if the taxable
70	70	entity is a combined group, received, for taxes paid under Chapter
71	71	151 during any part of the period on which the report is based, a
72	72	refund under Section 151.4293.
73	73	Sec. 171.575. AMOUNT; LIMITATIONS. The amount of the
74	74	credit under this subchapter is equal to 15 percent of the amount of
75	75	franchise tax due for the report after the application of all other
76	76	applicable tax credits.
77	77	Sec. 171.576. APPLICATION FOR CREDIT. (a) A taxable entity
78	78	must apply for a credit under this subchapter on or with the tax
79	79	report for the period for which the credit is claimed.
80	80	(b) The comptroller shall promulgate a form for the
81	81	application for the credit. A taxable entity must use the form in
82	82	applying for the credit.
83	83	Sec. 171.577. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
84	84	taxable entity may claim a credit under this subchapter on a report
85	85	only in connection with the employment of persons with disabilities
86	86	during the accounting period on which the report is based.
87	87	SECTION 3. Subchapter K-1, Chapter 171, Tax Code, as added
88	88	by this Act, applies only to a report originally due on or after the
89	89	effective date of this Act.
90	90	SECTION 4. This Act takes effect January 1, 2020.