TX
Texas House Bill HB3823

Texas 2019 - 86th Regular

Texas House Bill HB3823 Compare Versions

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1-86R23434 GRM-D
2- By: Sherman, Sr., Turner of Tarrant, Burrows, H.B. No. 3823
3- Zerwas, Davis of Dallas, et al.
4- Substitute the following for H.B. No. 3823:
5- By: Wray C.S.H.B. No. 3823
1+86R11551 KKR-D
2+ By: Sherman, Sr. H.B. No. 3823
63
74
85 A BILL TO BE ENTITLED
96 AN ACT
10- relating to a franchise tax credit for taxable entities that
11- provide paid family care leave.
7+ relating to a paid family care leave incentive for certain
8+ employers.
129 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13- SECTION 1. This Act may be cited as the Family First Act.
14- SECTION 2. Chapter 171, Tax Code, is amended by adding
15- Subchapter X to read as follows:
16- SUBCHAPTER X. TAX CREDIT FOR PAID FAMILY CARE LEAVE
17- Sec. 171.9281. DEFINITIONS. In this subchapter:
10+ SECTION 1. Subtitle D, Title 2, Labor Code, is amended by
11+ adding Chapter 83 to read as follows:
12+ CHAPTER 83. PAID FAMILY CARE LEAVE INCENTIVE
13+ Sec. 83.001. DEFINITIONS. In this chapter:
1814 (1) "Employee" means an individual who performs
1915 services for an employer for compensation under an oral or written
2016 contract of hire, whether express or implied. The term does not
2117 include an independent contractor.
22- (2) "Infant" means a child younger than one year of
23- age.
24- Sec. 171.9282. ENTITLEMENT TO CREDIT. A taxable entity is
25- entitled to a credit in the amount and under the conditions provided
26- by this subchapter against the tax imposed under this chapter.
27- Sec. 171.9283. QUALIFICATION. A taxable entity with an
28- average of not more than 1,500 employees during the period on which
29- the report is based qualifies for a credit under this subchapter if
30- the taxable entity provides paid family care leave to an employee
31- according to a policy adopted by the taxable entity under which an
32- employee is entitled to at least:
18+ (2) "Employer" means a business entity that employs
19+ one or more employees.
20+ Sec. 83.002. POLICY INCENTIVE. An employer qualifies for
21+ an exemption from the franchise tax under Section 171.089, Tax
22+ Code, if the employer adopts a family care leave policy under which
23+ an employee is entitled to at least:
3324 (1) four weeks of paid leave following giving birth to
34- an infant;
25+ a child;
3526 (2) two weeks of paid leave following the birth of the
36- employee's infant, if Subdivision (1) does not apply to the
27+ employee's child, if Subdivision (1) does not apply to the
3728 employee; and
38- (3) two weeks of paid leave following the adoption of
39- an infant by the employee or placement by the Department of Family
40- and Protective Services of an infant in substitute care with the
29+ (3) two weeks of paid leave following the adoption of a
30+ child by the employee or placement of a foster child with the
4131 employee.
42- Sec. 171.9284. AMOUNT OF CREDIT. The amount of the credit
43- for a tax report is equal to the lesser of:
44- (1) twice the amount of the costs attributable to
45- providing paid family care leave described by Section 171.9283 to
46- employees during the accounting period on which the report is
47- based; or
48- (2) the amount of franchise tax due for the report
49- after applying all other applicable credits.
50- Sec. 171.9285. APPLICATION FOR CREDIT. (a) A taxable
51- entity must apply for a credit under this subchapter on or with the
52- tax report for the period for which the credit is claimed.
53- (b) The comptroller shall promulgate a form for the
54- application for the credit. A taxable entity must use the form in
55- applying for the credit.
56- Sec. 171.9286. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
57- taxable entity may claim a credit under this subchapter for a tax
58- report only in connection with paid family care leave provided to an
59- employee during the accounting period on which the report is based.
60- Sec. 171.9287. RULES. The comptroller shall adopt rules
61- regarding the manner by which a taxable entity may demonstrate the
62- costs attributable to providing paid family care leave for purposes
63- of Section 171.9284.
64- SECTION 3. This Act applies only to a tax report originally
65- due on or after the effective date of this Act.
66- SECTION 4. This Act takes effect January 1, 2020.
32+ SECTION 2. (a) Subchapter B, Chapter 171, Tax Code, is
33+ amended by adding Section 171.089 to read as follows:
34+ Sec. 171.089. EXEMPTION--CERTAIN EMPLOYERS WHO ADOPT
35+ FAMILY CARE LEAVE POLICIES. A corporation is exempted from the
36+ franchise tax if the corporation adopts an employment leave policy
37+ described by Chapter 83, Labor Code.
38+ (b) This section applies only to a report originally due on
39+ or after the effective date of this Act.
40+ SECTION 3. This Act takes effect January 1, 2020.