Texas 2023 - 88th Regular

Texas House Bill HB4482 Compare Versions

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1	1	88R6674 SRA-D
2	2	By: Moody H.B. No. 4482
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a franchise tax credit for a taxable entity that employs
8	8	certain former offenders.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 171, Tax Code, is amended by adding
11	11	Subchapter N to read as follows:
12	12	SUBCHAPTER N. TAX CREDIT FOR EMPLOYERS WHO HIRE FORMER OFFENDERS
13	13	Sec. 171.701. DEFINITION. In this subchapter, "former
14	14	offender" means a person who was convicted of a state or federal
15	15	felony offense and incarcerated as a result of that conviction. The
16	16	term includes a person who was incarcerated as a result of a
17	17	violation of the conditions of parole or mandatory supervision
18	18	related to the conviction.
19	19	Sec. 171.702. ENTITLEMENT TO CREDIT. A taxable entity is
20	20	entitled to a credit in the amount and under the conditions provided
21	21	by this subchapter against the tax imposed under this chapter.
22	22	Sec. 171.703. QUALIFICATION. A taxable entity qualifies
23	23	for a credit under this subchapter if the taxable entity:
24	24	(1) employs a former offender within 12 months of the
25	25	former offender's release from the offender's first term of
26	26	incarceration for at least 40 hours of work per week; and
27	27	(2) pays the former offender a wage that, when
28	28	computed as an hourly wage, meets or exceeds the federal minimum
29	29	wage established under Section 6, Fair Labor Standards Act of 1938
30	30	(29 U.S.C. Section 206).
31	31	Sec. 171.704. AMOUNT OF CREDIT. A taxable entity may claim
32	32	a credit on a report in the amount of:
33	33	(1) $3,000 for each former offender whose first
34	34	anniversary of employment by the taxable entity occurs during the
35	35	period covered by the report, if the requirements of Section
36	36	171.703 are met at all times during the former offender's first year
37	37	of employment by the taxable entity;
38	38	(2) $2,000 for each former offender whose second
39	39	anniversary of employment by the taxable entity occurs during the
40	40	period covered by the report, if requirements of Section 171.703
41	41	are met at all times during the former offender's second year of
42	42	employment by the taxable entity; and
43	43	(3) $1,000 for each former offender whose third
44	44	anniversary of employment by the taxable entity occurs during the
45	45	period covered by the report, if the requirements of Section
46	46	171.703 are met at all times during the former offender's third year
47	47	of employment by the taxable entity.
48	48	Sec. 171.705. APPLICATION FOR CREDIT. (a) A taxable entity
49	49	must apply for a credit under this subchapter on or with the report
50	50	for which the credit is claimed.
51	51	(b) The comptroller shall prescribe the form and method of
52	52	applying for a credit under this section. A taxable entity must use
53	53	the form and method prescribed by the comptroller to apply for the
54	54	credit.
55	55	Sec. 171.706. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable
56	56	entity may not convey, assign, or transfer the credit allowed under
57	57	this subchapter to another taxable entity unless substantially all
58	58	of the assets of the taxable entity are conveyed, assigned, or
59	59	transferred in the same transaction.
60	60	Sec. 171.707. RULES. The comptroller shall adopt rules
61	61	necessary to implement this subchapter.
62	62	SECTION 2. This Act applies only to a report originally due
63	63	on or after the effective date of this Act.
64	64	SECTION 3. This Act takes effect January 1, 2024.