88R1335 CJC-D
By: Patterson H.B. No. 787
A BILL TO BE ENTITLED
AN ACT
relating to a prohibition on the receipt of tax incentives by
business entities that assist employees to obtain abortions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1, Tax Code, is amended by adding Section
1.16 to read as follows:
Sec. 1.16. INELIGIBILITY OF CERTAIN BUSINESS ENTITIES FOR
TAX INCENTIVES. (a) In this section:
(1) "Business entity" means any entity recognized by
law through which business is conducted, including a sole
proprietorship, partnership, firm, corporation, limited liability
company, holding company, joint stock company, receivership, or
trust, that employs one or more employees.
(2) "Tax incentive" means an abatement, credit,
discount, exclusion, exemption, limitation on appraised value,
refund, special valuation, special accounting treatment, special
appraisal method or provision, special rate, or special method of
reporting authorized by state law or the state constitution that
relates to a tax to which this title applies.
(b) Notwithstanding any other provision of this title, a
business entity is ineligible to receive a tax incentive if the
entity assists an employee to obtain an abortion, including by
paying all or part of any charges associated with the procedure or
costs associated with traveling to a location for the procedure.
(c) A business entity that is receiving a tax incentive on
the date the entity becomes ineligible under Subsection (b) may not
receive the incentive after December 31 of the calendar year in
which the entity becomes ineligible.
SECTION 2. Chapter 101, Tax Code, is amended by adding
Section 101.010 to read as follows:
Sec. 101.010. INELIGIBILITY OF CERTAIN BUSINESS ENTITIES
FOR TAX INCENTIVES. (a) In this section:
(1) "Business entity" means any entity recognized by
law through which business is conducted, including a sole
proprietorship, partnership, firm, corporation, limited liability
company, holding company, joint stock company, receivership, or
trust, that employs one or more employees.
(2) "Tax incentive" means an abatement, credit,
discount, exclusion, exemption, limitation on appraised value,
refund, special valuation, special accounting treatment, special
appraisal method or provision, special rate, or special method of
reporting authorized by state law or the state constitution that
relates to a tax to which this title applies.
(b) Notwithstanding any other provision of this title, a
business entity is ineligible to receive a tax incentive if the
entity assists an employee to obtain an abortion, including by
paying all or part of any charges associated with the procedure or
costs associated with traveling to a location for the procedure.
(c) A business entity that is receiving a tax incentive on
the date the entity becomes ineligible under Subsection (b) may not
receive the incentive after that date.
SECTION 3. Chapter 301, Tax Code, is amended by adding
Section 301.005 to read as follows:
Sec. 301.005. INELIGIBILITY OF CERTAIN BUSINESS ENTITIES
FOR TAX INCENTIVES. (a) In this section:
(1) "Business entity" means any entity recognized by
law through which business is conducted, including a sole
proprietorship, partnership, firm, corporation, limited liability
company, holding company, joint stock company, receivership, or
trust, that employs one or more employees.
(2) "Tax incentive" means an abatement, credit,
discount, exclusion, exemption, limitation on appraised value,
refund, special valuation, special accounting treatment, special
appraisal method or provision, special rate, or special method of
reporting authorized by state law or the state constitution that
relates to a tax to which this title applies.
(b) Notwithstanding any other provision of this title, a
business entity is ineligible to receive a tax incentive if the
entity assists an employee to obtain an abortion, including by
paying all or part of any charges associated with the procedure or
costs associated with traveling to a location for the procedure.
(c) A business entity that is receiving a tax incentive on
the date the entity becomes ineligible under Subsection (b) may not
receive the incentive after:
(1) for a tax incentive received under Subtitle B,
December 31 of the calendar year in which the entity becomes
ineligible; or
(2) for a tax incentive received under a subtitle
other than Subtitle B, the date the entity becomes ineligible.
SECTION 4. The changes in law made by this Act apply to a tax
incentive received by a business entity regardless of the date the
business entity first began receiving the tax incentive and
irrespective of whether the tax incentive is the subject of an
agreement between the business entity and this state or a political
subdivision of this state.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.