Texas 2021 - 87th Regular

Texas House Bill HB361 Compare Versions

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

Old	New	Differences
1	1	87R815 SMT-D
2	2	By: Sherman, Sr. H.B. No. 361
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a franchise tax credit for taxable entities that
8	8	provide paid family care leave.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. This Act may be cited as the Family First Act.
11	11	SECTION 2. Chapter 171, Tax Code, is amended by adding
12	12	Subchapter X to read as follows:
13	13	SUBCHAPTER X. TAX CREDIT FOR PAID FAMILY CARE LEAVE
14	14	Sec. 171.9281. DEFINITIONS. In this subchapter:
15	15	(1) "Employee" means an individual who performs
16	16	services for an employer for compensation under an oral or written
17	17	contract of hire, whether express or implied. The term does not
18	18	include an independent contractor.
19	19	(2) "Infant" means a child younger than one year of
20	20	age.
21	21	Sec. 171.9282. ENTITLEMENT TO CREDIT. A taxable entity is
22	22	entitled to a credit in the amount and under the conditions provided
23	23	by this subchapter against the tax imposed under this chapter.
24	24	Sec. 171.9283. QUALIFICATION. A taxable entity with an
25	25	average of not more than 1,500 employees during the period on which
26	26	the report is based qualifies for a credit under this subchapter if
27	27	the taxable entity provides paid family care leave to an employee
28	28	according to a policy adopted by the taxable entity under which an
29	29	employee is entitled to at least:
30	30	(1) four weeks of paid leave following giving birth to
31	31	an infant;
32	32	(2) two weeks of paid leave following the birth of the
33	33	employee's infant, if Subdivision (1) does not apply to the
34	34	employee; and
35	35	(3) two weeks of paid leave following the adoption of
36	36	an infant by the employee or placement by the Department of Family
37	37	and Protective Services of an infant in substitute care with the
38	38	employee.
39	39	Sec. 171.9284. AMOUNT OF CREDIT. The amount of the credit
40	40	for a report is equal to the lesser of:
41	41	(1) twice the amount of the costs attributable to
42	42	providing paid family care leave described by Section 171.9283 to
43	43	employees during the accounting period on which the report is
44	44	based; or
45	45	(2) the amount of franchise tax due for the report
46	46	after applying all other applicable credits.
47	47	Sec. 171.9285. APPLICATION FOR CREDIT. (a) A taxable
48	48	entity must apply for a credit under this subchapter on or with the
49	49	report for the period for which the credit is claimed.
50	50	(b) The comptroller shall promulgate a form for the
51	51	application for the credit. A taxable entity must use the form in
52	52	applying for the credit.
53	53	Sec. 171.9286. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
54	54	taxable entity may claim a credit under this subchapter for a report
55	55	only in connection with paid family care leave provided to an
56	56	employee during the accounting period on which the report is based.
57	57	Sec. 171.9287. RULES. The comptroller shall adopt rules
58	58	regarding the manner by which a taxable entity may demonstrate the
59	59	costs attributable to providing paid family care leave for purposes
60	60	of Section 171.9284.
61	61	SECTION 3. This Act applies only to a report originally due
62	62	on or after the effective date of this Act.
63	63	SECTION 4. This Act takes effect January 1, 2022.