Texas 2021 - 87th Regular

Texas House Bill HB2964 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R6229 SRA-F
2	2	By: Thierry H.B. No. 2964
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain requirements for a qualified business or
8	8	enterprise project under the enterprise zone program and to the
9	9	definition of qualified employee for purposes of the program.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2303.003(7), Government Code, is amended
12	12	to read as follows:
13	13	(7) "Qualified employee" means a person who:
14	14	(A) works for a qualified business;
15	15	(B) receives wages from the qualified business
16	16	from which employment taxes are deducted; and
17	17	(C) performs at least 50 percent of the person's
18	18	service for the business at the qualified business site, performs
19	19	services for the business pursuant to a telecommute arrangement for
20	20	the qualified business site and resides in this state, or if the
21	21	person engages in the transportation of goods or services, the
22	22	person reports to the qualified business site and resides within 50
23	23	miles of the qualified business site.
24	24	SECTION 2. Section 2303.401, Government Code, is amended to
25	25	read as follows:
26	26	Sec. 2303.401. DEFINITIONS. In this subchapter:
27	27	(1) "New permanent job" means any [a] new employment
28	28	position, regardless of job function, that:
29	29	(A) is created by a qualified business as
30	30	described by Section 2303.402 at the qualified business site not
31	31	earlier than the 90th day before the date the business's project or
32	32	activity is designated as an enterprise project under this chapter;
33	33	(B) will provide or has provided for the duration
34	34	of the project's designation period at least 1,820 hours of
35	35	employment a year to a qualified employee; and
36	36	(C) will exist or has existed at the qualified
37	37	business site for the longer of:
38	38	(i) the duration of the project's
39	39	designation period; or
40	40	(ii) three years after the date on which a
41	41	state benefit is received as authorized by this chapter.
42	42	(2) "Retained job" means any employment position,
43	43	regardless of job function, [a job] that:
44	44	(A) existed with a qualified business on the 91st
45	45	day before the date the business's project or activity is
46	46	designated as an enterprise project;
47	47	(B) has provided and will continue to provide
48	48	employment to a qualified employee of at least 1,820 hours
49	49	annually; and
50	50	(C) will be or has been an employment position
51	51	for the longer of:
52	52	(i) the duration of the project's
53	53	designation period; or
54	54	(ii) three years after the expiration date
55	55	of the claim period for receipt of a state benefit authorized by
56	56	this chapter.
57	57	SECTION 3. Section 2303.402(a), Government Code, is amended
58	58	to read as follows:
59	59	(a) A person is a qualified business if the bank, for the
60	60	purpose of state benefits under this chapter, or the nominating
61	61	body of a project or activity of the person under this chapter, for
62	62	the purpose of local incentives, certifies that:
63	63	(1) the person is engaged in or has provided
64	64	substantial commitment to initiate the active conduct of a trade or
65	65	business in an enterprise zone, and at least 25 percent of the
66	66	person's new permanent jobs in the enterprise zone are held by:
67	67	(A) residents of any enterprise zone in this
68	68	state;
69	69	(B) economically disadvantaged individuals; [or]
70	70	(C) veterans; [or]
71	71	(D) residents of an area in this state designated
72	72	as a qualified opportunity zone under Section 1400Z-1, Internal
73	73	Revenue Code of 1986; or
74	74	(E) individuals who are members of a minority
75	75	group as defined by Section 2306.6734(c); or
76	76	(2) the person is engaged in or has provided
77	77	substantial commitment to initiate the active conduct of a trade or
78	78	business in an area of this state that does not qualify as an
79	79	enterprise zone, and at least 35 percent of the person's new
80	80	permanent jobs at the qualified business site are held by:
81	81	(A) residents of any enterprise zone in this
82	82	state;
83	83	(B) individuals who are economically
84	84	disadvantaged; [or]
85	85	(C) veterans;
86	86	(D) residents of an area in this state designated
87	87	as a qualified opportunity zone under Section 1400Z-1, Internal
88	88	Revenue Code of 1986; or
89	89	(E) individuals who are members of a minority
90	90	group as defined by Section 2306.6734(c).
91	91	SECTION 4. Subchapter F, Chapter 2303, Government Code, is
92	92	amended by adding Section 2303.409 to read as follows:
93	93	Sec. 2303.409. TEMPORARY WAIVER OF EMPLOYMENT HOURS
94	94	REQUIREMENT. (a) Notwithstanding any other provision of law, the
95	95	minimum requirement of annual employment hours for a new permanent
96	96	job or a retained job as defined by Section 2303.401 is waived for
97	97	any annual certification or retention period that includes any
98	98	period beginning March 1, 2020, and ending December 31, 2021.
99	99	(b) This section expires December 31, 2022.
100	100	SECTION 5. Section 151.429, Tax Code, is amended by adding
101	101	Subsection (g-1) to read as follows:
102	102	(g-1) Notwithstanding Subsection (g), the level of
103	103	employment of qualified employees required to be maintained by an
104	104	enterprise project is waived for any annual period that includes
105	105	any period beginning March 1, 2020, and ending December 31, 2021.
106	106	This subsection expires December 31, 2022.
107	107	SECTION 6. (a) Except as provided by Subsection (b) of this
108	108	section, the changes in law made by this Act apply only to an
109	109	application for an enterprise project designation or for a refund
110	110	of state taxes as provided by the enterprise zone program
111	111	established under Chapter 2303, Government Code, as amended by this
112	112	Act, that is submitted on or after the effective date of this Act.
113	113	An application for an enterprise project designation or for a state
114	114	tax refund as provided by the enterprise zone program that is
115	115	submitted before the effective date of this Act is governed by the
116	116	law in effect on the date the application was submitted, and the
117	117	former law is continued in effect for that purpose.
118	118	(b) Section 2303.409, Government Code, as added by this Act,
119	119	and Section 151.429(g-1), Tax Code, as added by this Act, apply to
120	120	an enterprise project that is under audit or subject to audit by the
121	121	comptroller of public accounts on or after the effective date of
122	122	this Act.
123	123	SECTION 7. This Act takes effect immediately if it receives
124	124	a vote of two-thirds of all the members elected to each house, as
125	125	provided by Section 39, Article III, Texas Constitution. If this
126	126	Act does not receive the vote necessary for immediate effect, this
127	127	Act takes effect September 1, 2021.