88R14158 SRA-D
By: Bernal H.B. No. 4747
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for taxable entities that
provide child care.
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 PROVISION OF CHILD CARE
Sec. 171.701. DEFINITION. In this subchapter, "employee"
means an individual who performs services for an employer for
compensation under an oral or written contract of hire, whether
express or implied. The term does not include an independent
contractor.
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 subsidizes
all or a portion of the entity's employees' costs for child care at:
(1) a licensed child-care center operated by the
entity; or
(2) a licensed commercial or home-based child-care
center.
Sec. 171.704. AMOUNT OF CREDIT. The amount of a taxable
entity's credit for a report is equal to the lesser of:
(1) the amount of the costs attributable to
subsidizing employee child care in the manner described by Section
171.703 during the period on which the report is based; or
(2) the amount equal to one percent of the franchise
tax due for the report after applying all other applicable credits.
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.
(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 meets the
requirements of Section 171.703.
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 and administer 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.