| 1 | 1 | | 88R4267 CJD-D |
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| 2 | 2 | | By: Guillen H.B. No. 2344 |
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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 a taxable entity that assists |
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| 8 | 8 | | an employee in obtaining a high school diploma or high school |
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| 9 | 9 | | equivalency certificate. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 12 | 12 | | Subchapter K to read as follows: |
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| 13 | 13 | | SUBCHAPTER K. TAX CREDIT FOR ASSISTING EMPLOYEES IN OBTAINING HIGH |
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| 14 | 14 | | SCHOOL DIPLOMA OR EQUIVALENCY CERTIFICATE |
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| 15 | 15 | | Sec. 171.551. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 16 | 16 | | entitled to a credit in the amount and under the conditions provided |
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| 17 | 17 | | by this subchapter against the tax imposed under this chapter. |
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| 18 | 18 | | Sec. 171.552. QUALIFICATION. A taxable entity qualifies |
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| 19 | 19 | | for a credit under this subchapter if the taxable entity helps at |
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| 20 | 20 | | least one of the entity's employees obtain a high school diploma or |
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| 21 | 21 | | high school equivalency certificate during the period for which the |
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| 22 | 22 | | report on which the credit is claimed is based. |
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| 23 | 23 | | Sec. 171.553. AMOUNT OF CREDIT; LIMITATION. (a) Subject to |
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| 24 | 24 | | Subsection (b), the amount of the credit for a report is the lesser |
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| 25 | 25 | | of: |
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| 26 | 26 | | (1) $2,000; or |
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| 27 | 27 | | (2) two percent of the amount of franchise tax due for |
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| 28 | 28 | | the report before the application of any other applicable credits. |
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| 29 | 29 | | (b) The total credit claimed on a report may not exceed the |
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| 30 | 30 | | amount of franchise tax due for the report after application of any |
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| 31 | 31 | | other applicable credits. |
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| 32 | 32 | | Sec. 171.554. APPLICATION FOR CREDIT. (a) A taxable entity |
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| 33 | 33 | | must apply for a credit under this subchapter on or with the report |
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| 34 | 34 | | for the period for which the credit is claimed. |
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| 35 | 35 | | (b) The comptroller shall promulgate a form for the |
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| 36 | 36 | | application for the credit. A taxable entity must use the form in |
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| 37 | 37 | | applying for the credit. |
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| 38 | 38 | | (c) The comptroller may require a taxable entity to submit |
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| 39 | 39 | | with an application any information the comptroller determines is |
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| 40 | 40 | | necessary to determine whether the taxable entity qualifies for the |
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| 41 | 41 | | credit under Section 171.552. |
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| 42 | 42 | | Sec. 171.555. RULES. The comptroller shall adopt rules |
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| 43 | 43 | | necessary to implement and administer this subchapter. |
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| 44 | 44 | | SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by |
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| 45 | 45 | | this Act, applies only to a report originally due on or after |
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| 46 | 46 | | January 1, 2024. |
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| 47 | 47 | | SECTION 3. This Act takes effect January 1, 2024. |
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