Texas 2019 - 86th Regular

Texas House Bill HB52 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R23635 GRM-D
2		-	By: Hinojosa, Wray, Martinez Fischer, H.B. No. 52
3		-	Guillen, Cole
4		-	Substitute the following for H.B. No. 52:
5		-	By: Rodriguez C.S.H.B. No. 52
	1	+	86R1540 GRM-D
	2	+	By: Hinojosa H.B. No. 52
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10	7		relating to a franchise tax credit pilot program for taxable
11	8		entities that contribute to an employee dependent care flexible
12	9		spending account.
13	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	11		SECTION 1. Chapter 171, Tax Code, is amended by adding
15	12		Subchapter P to read as follows:
16	13		SUBCHAPTER P. TAX CREDIT PILOT PROGRAM FOR EMPLOYER CONTRIBUTIONS
17	14		TO DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS
18	15		Sec. 171.801. DEFINITION. In this subchapter, "dependent
19	16		care flexible spending account" means a pretax benefit account used
20	17		to pay eligible dependent care services as authorized by the
21	18		Internal Revenue Code of 1986, as effective on January 1, 2019.
22	19		Sec. 171.802. ENTITLEMENT TO CREDIT. A taxable entity is
23	20		entitled to a credit in the amount and under the conditions provided
24	21		by this subchapter against the tax imposed under this chapter.
25		-	Sec. 171.803. QUALIFICATION. (a) Subject to Subsection
26		-	(b), a taxable entity qualifies for a credit under this subchapter
27		-	if the taxable entity:
28		-	(1) has an average of not more than 500 employees
29		-	during the period on which the report is based; and
30		-	(2) contributes to the dependent care flexible
	22	+	Sec. 171.803. QUALIFICATION. A taxable entity with not
	23	+	more than 500 employees qualifies for a credit under this
	24	+	subchapter for contributions made to the dependent care flexible
31	25		spending account of each employee of the taxable entity who
32		-	maintains an account and receives from the taxable entity an annual
33		-	salary or wage of not more than $65,000.
34		-	(b) A combined group qualifies for a credit under this
35		-	subchapter in connection with any member of the combined group that
36		-	satisfies the requirements of Subsection (a).
	26	+	receives from the taxable entity an annual salary or wage of not
	27	+	more than $65,000.
37	28		Sec. 171.804. AMOUNT OF CREDIT; LIMITATIONS. (a) Subject
38	29		to Subsection (b), the amount of the credit for a report in
39		-	connection with each employee described by Section 171.803~~(a)(2)~~ is
40		-	~~equal~~ to the lesser of:
	30	+	connection with each employee described by Section 171.803 is equal
	31	+	to the lesser of:
41	32		(1) 50 percent of the contributions made by the
42	33		taxable entity to the employee's dependent care flexible spending
43		-	account, excluding any portion of a contribution returned to the
44		-	taxable entity; or
	34	+	account; or
45	35		(2) $2,500.
46	36		(b) The total amount of the credit for each report is equal
47	37		to the lesser of:
48	38		(1) the total of the credits allowed under Subsection
49	39		(a) for the reporting period for all employees; or
50	40		(2) the amount of franchise tax due after applying all
51	41		other applicable credits.
52	42		Sec. 171.805. APPLICATION FOR CREDIT. (a) A taxable entity
53	43		must apply for a credit under this subchapter on or with the tax
54	44		report for the period for which the credit is claimed.
55	45		(b) The comptroller shall promulgate a form for the
56	46		application for the credit. A taxable entity must use the form in
57	47		applying for the credit.
58	48		Sec. 171.806. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
59	49		taxable entity may claim a credit under this subchapter for a report
60	50		only in connection with contributions made during the accounting
61	51		period on which the report is based.
62		-	Sec. 171.807. DEPOSIT OF CERTAIN REVENUE. Notwithstanding
63		-	any other law, for each fiscal year, the comptroller must deposit to
64		-	the credit of the property tax relief fund an amount of revenue
65		-	received from the tax imposed under this chapter sufficient to
66		-	offset any decrease in deposits to that fund that results from the
67		-	implementation of this subchapter.
68		-	Sec. 171.808. EXPIRATION. This subchapter expires December
	52	+	Sec. 171.807. EXPIRATION. This subchapter expires December
69	53		31, 2021.
70	54		SECTION 2. (a) Not later than September 1, 2022, the
71	55		comptroller shall prepare and deliver to the governor, the
72	56		lieutenant governor, the speaker of the house of representatives,
73	57		and the presiding officer of each legislative standing committee
74	58		with primary jurisdiction over taxation a report that evaluates the
75	59		effect of the pilot program established under Subchapter P, Chapter
76	60		171, Tax Code, as added by this Act, on employer contributions to
77	61		employees' dependent care flexible spending accounts for which
78	62		credits are granted under the pilot program under that subchapter.
79	63		The report must include a recommendation regarding whether the
80	64		credit allowed under the pilot program should be reestablished.
81	65		(b) A taxable entity that claims a credit under Subchapter
82	66		P, Chapter 171, Tax Code, as added by this Act, shall provide to the
83	67		comptroller information the comptroller requests to prepare the
84	68		report described by Subsection (a) of this section.
85	69		SECTION 3. A taxable entity may claim the credit under
86	70		Subchapter P, Chapter 171, Tax Code, as added by this Act, only for
87		-	contributions made on or after September 1, 2019, and before
88		-	January 1, 2022, and only on a franchise tax report originally due
89		-	under Chapter 171, Tax Code, on or after January 1, 2020, and before
90		-	January 1, 2023, notwithstanding the expiration of Subchapter P,
91		-	Chapter 171, Tax Code, as added by this Act.
	71	+	contributions made on or after September 1, 2019, and only on a
	72	+	franchise tax report originally due under Chapter 171, Tax Code, on
	73	+	or after January 1, 2020.
92	74		SECTION 4. This Act takes effect September 1, 2019.