| 1 | 1 | | 86R8054 GRM-D |
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| 2 | 2 | | By: Hinojosa S.B. No. 1869 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a franchise tax credit for taxable entities that employ |
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| 8 | 8 | | persons with disabilities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter K-1 to read as follows: |
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| 12 | 12 | | SUBCHAPTER K-1. TAX CREDIT FOR WAGES PAID TO PERSONS WITH |
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| 13 | 13 | | DISABILITIES |
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| 14 | 14 | | Sec. 171.571. DEFINITION. In this subchapter, "person with |
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| 15 | 15 | | a disability" means a person who, at the time of being hired, has a |
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| 16 | 16 | | disability as defined by 42 U.S.C. Section 12102. |
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| 17 | 17 | | Sec. 171.572. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 18 | 18 | | entitled to a credit in the amount and under the conditions provided |
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| 19 | 19 | | by this subchapter against the tax imposed under this chapter. |
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| 20 | 20 | | Sec. 171.573. QUALIFICATION. A taxable entity qualifies |
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| 21 | 21 | | for a credit under this subchapter for wages paid to each person |
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| 22 | 22 | | with a disability who is employed by the taxable entity in a |
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| 23 | 23 | | position that is located or based in this state. |
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| 24 | 24 | | Sec. 171.574. AMOUNT; LIMITATIONS. (a) Subject to |
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| 25 | 25 | | Subsection (b), the amount of the credit for a report in connection |
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| 26 | 26 | | with each employee described by Section 171.573 is equal to the |
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| 27 | 27 | | lesser of: |
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| 28 | 28 | | (1) 50 percent of the wages paid by the taxable entity |
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| 29 | 29 | | to the employee; or |
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| 30 | 30 | | (2) $7,500. |
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| 31 | 31 | | (b) The total amount of the credit for each report is equal |
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| 32 | 32 | | to the lesser of: |
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| 33 | 33 | | (1) the total of the credits allowed under Subsection |
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| 34 | 34 | | (a) for the reporting period for all employees described by Section |
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| 35 | 35 | | 171.573; or |
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| 36 | 36 | | (2) the amount of franchise tax due after applying all |
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| 37 | 37 | | other applicable credits. |
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| 38 | 38 | | Sec. 171.575. APPLICATION FOR CREDIT. (a) A taxable entity |
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| 39 | 39 | | must apply for a credit under this subchapter on or with the tax |
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| 40 | 40 | | report for the period for which the credit is claimed. |
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| 41 | 41 | | (b) The comptroller shall promulgate a form for the |
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| 42 | 42 | | application for the credit. A taxable entity must use the form in |
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| 43 | 43 | | applying for the credit. |
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| 44 | 44 | | Sec. 171.576. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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| 45 | 45 | | taxable entity may claim a credit under this subchapter for a report |
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| 46 | 46 | | only in connection with wages paid during the accounting period on |
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| 47 | 47 | | which the report is based. |
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| 48 | 48 | | Sec. 171.577. RULES. The comptroller shall adopt rules |
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| 49 | 49 | | regarding the manner by which a taxable entity may demonstrate that |
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| 50 | 50 | | an employee is a person with a disability for purposes of this |
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| 51 | 51 | | subchapter. |
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| 52 | 52 | | SECTION 2. A taxable entity may claim the credit under |
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| 53 | 53 | | Subchapter K-1, Chapter 171, Tax Code, as added by this Act, only |
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| 54 | 54 | | for wages paid on or after the effective date of this Act and only on |
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| 55 | 55 | | a franchise tax report originally due under Chapter 171, Tax Code, |
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| 56 | 56 | | on or after that date. |
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| 57 | 57 | | SECTION 3. This Act takes effect January 1, 2020. |
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