86R23434 GRM-D
By: Sherman, Sr., Turner of Tarrant, Burrows, H.B. No. 3823
Zerwas, Davis of Dallas, et al.
Substitute the following for H.B. No. 3823:
By: Wray C.S.H.B. No. 3823
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for taxable entities that
provide paid family care leave.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Family First Act.
SECTION 2. Chapter 171, Tax Code, is amended by adding
Subchapter X to read as follows:
SUBCHAPTER X. TAX CREDIT FOR PAID FAMILY CARE LEAVE
Sec. 171.9281. DEFINITIONS. In this subchapter:
(1) "Employee" means an individual who performs
services for an employer for compensation under an oral or written
contract of hire, whether express or implied. The term does not
include an independent contractor.
(2) "Infant" means a child younger than one year of
age.
Sec. 171.9282. 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. 171.9283. QUALIFICATION. A taxable entity with an
average of not more than 1,500 employees during the period on which
the report is based qualifies for a credit under this subchapter if
the taxable entity provides paid family care leave to an employee
according to a policy adopted by the taxable entity under which an
employee is entitled to at least:
(1) four weeks of paid leave following giving birth to
an infant;
(2) two weeks of paid leave following the birth of the
employee's infant, if Subdivision (1) does not apply to the
employee; and
(3) two weeks of paid leave following the adoption of
an infant by the employee or placement by the Department of Family
and Protective Services of an infant in substitute care with the
employee.
Sec. 171.9284. AMOUNT OF CREDIT. The amount of the credit
for a tax report is equal to the lesser of:
(1) twice the amount of the costs attributable to
providing paid family care leave described by Section 171.9283 to
employees during the accounting period on which the report is
based; or
(2) the amount of franchise tax due for the report
after applying all other applicable credits.
Sec. 171.9285. 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. 171.9286. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
taxable entity may claim a credit under this subchapter for a tax
report only in connection with paid family care leave provided to an
employee during the accounting period on which the report is based.
Sec. 171.9287. RULES. The comptroller shall adopt rules
regarding the manner by which a taxable entity may demonstrate the
costs attributable to providing paid family care leave for purposes
of Section 171.9284.
SECTION 3. This Act applies only to a tax report originally
due on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2020.