86R11027 GRM-D
By: Kuempel H.B. No. 3208
A BILL TO BE ENTITLED
AN ACT
relating to providing a sales and use tax refund or franchise tax
credit for businesses that employ persons with disabilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
by adding Section 151.4293 to read as follows:
Sec. 151.4293. TAX REFUND FOR EMPLOYERS WHO HIRE PERSONS
WITH DISABILITIES. (a) In this section, "person with a disability"
means a person who, at the time of being hired, is at least 18 years
of age but not older than 62 years of age and:
(1) has a disability as defined by 42 U.S.C. Section
12102;
(2) receives Supplemental Security Income (SSI)
benefits under 42 U.S.C. Section 1381 et seq. on the basis of
disability or blindness or Social Security Disability Insurance
(SSDI) benefits under 42 U.S.C. Section 401 et seq.;
(3) qualifies for or is receiving vocational
rehabilitation services provided through the Texas Workforce
Commission;
(4) is a veteran as defined by 38 U.S.C. Section 101
who has suffered at least a 50 percent service-connected disability
as defined by that section; or
(5) completes an affidavit that:
(A) includes:
(i) the person's full name;
(ii) the person's address;
(iii) a copy of the person's driver's
license, election identification certificate, or personal
identification card issued by the Department of Public Safety; and
(iv) the person's signature; and
(B) is accompanied by a letter from a physician
that verifies the person's disability.
(b) Except as provided by Subsection (c), a person is
eligible for a refund of 15 percent of the taxes imposed on taxable
items purchased by the person and paid under this chapter during a
calendar year if during that entire year at least 10 percent of the
person's employees were persons with disabilities and were employed
in full-time employment positions that paid at least minimum wage
and that were located or based in this state.
(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 K-1, Chapter
171, on a franchise tax report covering any portion 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 K-1 to read as follows:
SUBCHAPTER K-1. TAX CREDIT FOR EMPLOYERS WHO HIRE PERSONS WITH
DISABILITIES
Sec. 171.571. DEFINITION. In this subchapter, "person with
a disability" has the meaning assigned by Section 151.4293.
Sec. 171.572. 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. 171.573. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter on a report if during the entire
period on which the report is based at least 10 percent of the
taxable entity's employees were persons with disabilities and were
employed in full-time employment positions that paid at least
minimum wage and that were located or based in this state.
Sec. 171.574. 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 any part of the period on which the report is based, a
refund under Section 151.4293.
Sec. 171.575. 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. 171.576. 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. 171.577. 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 persons with disabilities
during the accounting period on which the report is based.
SECTION 3. Subchapter K-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.