88R4267 CJD-D
By: Guillen H.B. No. 2344
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for a taxable entity that assists
an employee in obtaining a high school diploma or high school
equivalency certificate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. TAX CREDIT FOR ASSISTING EMPLOYEES IN OBTAINING HIGH
SCHOOL DIPLOMA OR EQUIVALENCY CERTIFICATE
Sec. 171.551. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions provided
by this subchapter against the tax imposed under this chapter.
Sec. 171.552. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if the taxable entity helps at
least one of the entity's employees obtain a high school diploma or
high school equivalency certificate during the period for which the
report on which the credit is claimed is based.
Sec. 171.553. AMOUNT OF CREDIT; LIMITATION. (a) Subject to
Subsection (b), the amount of the credit for a report is the lesser
of:
(1) $2,000; or
(2) two percent of the amount of franchise tax due for
the report before the application of any other applicable credits.
(b) The total credit claimed on a report may not exceed the
amount of franchise tax due for the report after application of any
other applicable credits.
Sec. 171.554. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the report
for the period for which the credit is claimed.
(b) The comptroller shall promulgate a form for the
application for the credit. A taxable entity must use the form in
applying for the credit.
(c) The comptroller may require a taxable entity to submit
with an application any information the comptroller determines is
necessary to determine whether the taxable entity qualifies for the
credit under Section 171.552.
Sec. 171.555. RULES. The comptroller shall adopt rules
necessary to implement and administer this subchapter.
SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by
this Act, applies only to a report originally due on or after
January 1, 2024.
SECTION 3. This Act takes effect January 1, 2024.