88R6674 SRA-D
By: Moody H.B. No. 4482
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for a taxable entity that employs
certain former offenders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter N to read as follows:
SUBCHAPTER N. TAX CREDIT FOR EMPLOYERS WHO HIRE FORMER OFFENDERS
Sec. 171.701. DEFINITION. In this subchapter, "former
offender" means a person who was convicted of a state or federal
felony offense and incarcerated as a result of that conviction. The
term includes a person who was incarcerated as a result of a
violation of the conditions of parole or mandatory supervision
related to the conviction.
Sec. 171.702. 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. 171.703. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if the taxable entity:
(1) employs a former offender within 12 months of the
former offender's release from the offender's first term of
incarceration for at least 40 hours of work per week; and
(2) pays the former offender a wage that, when
computed as an hourly wage, meets or exceeds the federal minimum
wage established under Section 6, Fair Labor Standards Act of 1938
(29 U.S.C. Section 206).
Sec. 171.704. AMOUNT OF CREDIT. A taxable entity may claim
a credit on a report in the amount of:
(1) $3,000 for each former offender whose first
anniversary of employment by the taxable entity occurs during the
period covered by the report, if the requirements of Section
171.703 are met at all times during the former offender's first year
of employment by the taxable entity;
(2) $2,000 for each former offender whose second
anniversary of employment by the taxable entity occurs during the
period covered by the report, if requirements of Section 171.703
are met at all times during the former offender's second year of
employment by the taxable entity; and
(3) $1,000 for each former offender whose third
anniversary of employment by the taxable entity occurs during the
period covered by the report, if the requirements of Section
171.703 are met at all times during the former offender's third year
of employment by the taxable entity.
Sec. 171.705. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the report
for which the credit is claimed.
(b) The comptroller shall prescribe the form and method of
applying for a credit under this section. A taxable entity must use
the form and method prescribed by the comptroller to apply for the
credit.
Sec. 171.706. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable
entity may not convey, assign, or transfer the credit allowed under
this subchapter to another taxable entity unless substantially all
of the assets of the taxable entity are conveyed, assigned, or
transferred in the same transaction.
Sec. 171.707. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2024.