88R7854 SRA-F
By: Birdwell S.B. No. 1688
A BILL TO BE ENTITLED
AN ACT
relating to requirements for a qualified business participating in
the enterprise zone program during a certain period.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 2303, Government Code, is
amended by adding Section 2303.499 to read as follows:
Sec. 2303.499. CERTAIN REQUIREMENTS WAIVED DURING COVID
RELIEF PERIOD. (a) In this section, "COVID relief period" means
the period beginning March 1, 2020, and ending December 31, 2021.
(b) Notwithstanding Section 2303.003(7)(C) or any other
law, the requirement that an employee perform at least 50 percent of
the person's service for the business at the qualified business
site to be a "qualified employee" is waived for an annual
certification or job retention period that includes the COVID
relief period.
(c) A qualified business in compliance with this chapter
before the COVID relief period that is eligible for a waiver under
Subsection (b) may elect to withdraw its project or activity from
designation as an enterprise project by December 31, 2023. A
qualified business that withdraws its enterprise project
designation under this subsection is considered eligible for any
refund of state taxes under Section 2303.504 approved for the COVID
relief period, notwithstanding the requirements for meeting the
definition of a new permanent job under Section 2303.401(1)(C) or a
retained job under Section 2303.401(2)(C).
(d) This section expires December 31, 2030.
SECTION 2. Section 151.429, Tax Code, is amended by adding
Subsection (g-1) to read as follows:
(g-1) The comptroller shall waive the requirements of
Subsection (g) for a qualified business that did not meet the
requirement that a qualified employee perform at least 50 percent
of the person's service for the business at the qualified business
site, as defined by Section 2303.003, at any time during the period
beginning March 1, 2020, and ending December 31, 2021. This
subsection expires December 31, 2030.
SECTION 3. Section 2303.499, Government Code, and Section
151.429(g-1), Tax Code, as added by this Act, apply to any audit by
the comptroller of whether an enterprise project is eligible for a
tax refund under Section 151.429, Tax Code, that is not finally
completed before the effective date of this Act.
SECTION 4. 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.