Texas 2023 - 88th Regular

Texas Senate Bill SB2390 Compare Versions

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1	1	88R7330 SRA-F
2	2	By: Paxton, Hughes S.B. No. 2390
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the strong families credit against certain taxes for
8	8	entities that contribute to certain organizations.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Title 5, Alcoholic Beverage Code, is amended by
11	11	adding Chapter 207 to read as follows:
12	12	CHAPTER 207. STRONG FAMILIES TAX CREDIT
13	13	Sec. 207.001. DEFINITIONS. In this chapter:
14	14	(1) "Designated contribution," "eligible
15	15	organization," and "strong families credit" have the meanings
16	16	assigned by Section 171.701, Tax Code.
17	17	(2) "Taxpayer" means a person who pays a tax under this
18	18	title.
19	19	Sec. 207.002. ELIGIBILITY. A taxpayer that makes a
20	20	designation contribution that meets the requirements of Subchapter
21	21	N, Chapter 171, Tax Code, is entitled to apply for a strong families
22	22	credit in the amount and under the conditions provided by this
23	23	chapter against taxes paid under this title.
24	24	Sec. 207.003. AMOUNT OF CREDIT; LIMITATIONS. (a) Subject
25	25	to Subsections (b) and (c), the amount of a taxpayer's credit for a
26	26	state fiscal year is equal to the lesser of:
27	27	(1) the amount of designated contributions made to
28	28	eligible organizations during the state fiscal year; or
29	29	(2) the amount of taxes paid by the taxpayer under this
30	30	title during the state fiscal year.
31	31	(b) The maximum amount of strong families credits that may
32	32	be awarded for a state fiscal year is the amount provided by Section
33	33	171.706(b), Tax Code.
34	34	(c) The maximum amount of designated contributions a
35	35	taxpayer may make to all eligible organizations in a state fiscal
36	36	year is the amount provided by Section 171.706(c), Tax Code.
37	37	(d) The comptroller shall allocate strong families credits
38	38	as provided by Section 171.706(d), Tax Code.
39	39	Sec. 207.004. APPLICATION. (a) A taxpayer must apply to
40	40	claim a strong families credit against a tax imposed under this
41	41	title.
42	42	(b) The comptroller shall prescribe the form and method of
43	43	applying to claim a credit under this section. The taxpayer must use
44	44	this method in applying for the credit.
45	45	(c) The comptroller may award a credit to a taxpayer who
46	46	applies for the credit under Subsection (a) if the taxpayer is
47	47	eligible for the credit and the credit is available under Section
48	48	171.706(b), Tax Code.
49	49	(d) The comptroller shall notify a taxpayer in writing of
50	50	the comptroller's decision to grant or deny the application under
51	51	Subsection (a). If the comptroller denies a taxpayer's
52	52	application, the comptroller shall include in the notice of denial
53	53	the reasons for the comptroller's decision.
54	54	Sec. 207.005. RULES. The comptroller may adopt rules and
55	55	procedures necessary to implement, administer, and enforce this
56	56	chapter.
57	57	SECTION 2. Subtitle B, Title 3, Insurance Code, is amended
58	58	by adding Chapter 230 to read as follows:
59	59	CHAPTER 230. STRONG FAMILIES TAX CREDIT
60	60	Sec. 230.001. DEFINITIONS. In this chapter:
61	61	(1) "Designated contribution," "eligible
62	62	organization," and "strong families credit" have the meanings
63	63	assigned by Section 171.701, Tax Code.
64	64	(2) "State insurance tax liability" means any tax
65	65	liability incurred by an entity under Chapters 221 through 226 or
66	66	Chapter 281.
67	67	Sec. 230.002. ELIGIBILITY. An entity that makes a
68	68	designated contribution that meets the requirements of Subchapter
69	69	N, Chapter 171, Tax Code, is entitled to apply for a strong families
70	70	credit in the amount and under the conditions provided by this
71	71	chapter against the entity's state insurance tax liability.
72	72	Sec. 230.003. AMOUNT OF CREDIT; LIMITATION ON TOTAL
73	73	CREDITS. (a) Subject to Subsections (b) and (c), the amount of an
74	74	entity's credit for a report is equal to the lesser of:
75	75	(1) the amount of designated contributions made to an
76	76	eligible organization during the year covered by the report; or
77	77	(2) the amount of the entity's state insurance tax
78	78	liability for the year covered by the report after applying all
79	79	other applicable credits.
80	80	(b) The maximum amount of strong families credits that may
81	81	be awarded for a state fiscal year is the amount provided by Section
82	82	171.706(b), Tax Code.
83	83	(c) The maximum amount of designated contributions an
84	84	entity may make to all eligible organizations in a state fiscal year
85	85	is the amount provided by Section 171.706(c), Tax Code.
86	86	(d) The comptroller shall allocate strong families credits
87	87	as provided by Section 171.706(d), Tax Code.
88	88	Sec. 230.004. APPLICATION FOR CREDIT. (a) An entity must
89	89	apply to claim a strong families credit under this chapter on or
90	90	with the report covering the year in which the designated
91	91	contribution was made.
92	92	(b) The comptroller shall prescribe the form and method of
93	93	applying to claim a credit under this section. An entity must use
94	94	this method in applying for the credit under this chapter.
95	95	(c) The comptroller may award a credit to an entity that
96	96	applies for the credit under Subsection (a) if the entity is
97	97	eligible for the credit and the credit is available under Section
98	98	171.706(b), Tax Code.
99	99	Sec. 230.005. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
100	100	may not convey, assign, or transfer the strong families credit to
101	101	another entity unless substantially all of the assets of the entity
102	102	are conveyed, assigned, or transferred in the same transaction.
103	103	Sec. 230.006. RULES. The comptroller may adopt rules and
104	104	procedures necessary to implement, administer, and enforce this
105	105	chapter.
106	106	SECTION 3. Chapter 171, Tax Code, is amended by adding
107	107	Subchapter N to read as follows:
108	108	SUBCHAPTER N. STRONG FAMILIES TAX CREDIT
109	109	Sec. 171.701. DEFINITIONS. In this subchapter:
110	110	(1) "Designated contribution" means a monetary
111	111	contribution to an eligible organization that the contributor
112	112	designates at the time of contribution as being made for the purpose
113	113	of the strong families credit.
114	114	(2) "Eligible organization" means an organization
115	115	that is designated by the comptroller as an eligible organization
116	116	under this subchapter.
117	117	(3) "Strong families credit" means the tax credit
118	118	established under this subchapter that may be claimed under:
119	119	(A) Chapter 207, Alcoholic Beverage Code;
120	120	(B) Chapter 230, Insurance Code;
121	121	(C) this subchapter; or
122	122	(D) Chapter 203.
123	123	Sec. 171.702. ELIGIBILITY FOR CREDIT. A taxable entity
124	124	that makes a designated contribution that meets the requirements of
125	125	this subchapter is eligible to apply for a strong families credit in
126	126	the amount and under the conditions provided by this subchapter
127	127	against the tax imposed under this chapter.
128	128	Sec. 171.703. QUALIFICATIONS FOR ELIGIBLE ORGANIZATION;
129	129	VERIFICATION OF ELIGIBILITY. (a) An organization may apply for
130	130	designation as an eligible organization under this subchapter if
131	131	the organization:
132	132	(1) is exempt from federal income taxation under
133	133	Section 501(a), Internal Revenue Code of 1986, as an organization
134	134	described by Section 501(c)(3) of that code;
135	135	(2) is authorized to transact business in this state;
136	136	(3) has provided the following services in this state
137	137	for at least three years preceding the organization's initial
138	138	application for designation as an eligible organization:
139	139	(A) mental health services, including individual
140	140	and family therapy;
141	141	(B) in-home and community-based parenting
142	142	services;
143	143	(C) comprehensive case management services based
144	144	on the assessment of family strengths and needs;
145	145	(D) financial empowerment services, including
146	146	financial literacy, job skills, and vocational training; or
147	147	(E) in-school programs, community-based events,
148	148	or online resources to assist fathers in learning and improving
149	149	parenting skills or programs that provide services and resources
150	150	that engage absent fathers in being more involved in their
151	151	children's lives.
152	152	(b) Services described by Subsections (a)(3)(A) through (D)
153	153	must be provided based on community needs identified through a
154	154	needs assessment, implemented with a continuous quality
155	155	improvement process, and evaluated based on outcomes.
156	156	(c) An organization must reapply for designation as an
157	157	eligible organization each calendar year by submitting to the
158	158	comptroller a signed application form containing:
159	159	(1) a description of the qualifying services and
160	160	resources provided by the organization;
161	161	(2) the total number of individuals served through the
162	162	services and resources described by Subdivision (1) during the
163	163	previous calendar year and the number of those individuals served
164	164	and provided resources that year using designated contributions;
165	165	(3) outcomes for services described by Subdivision
166	166	(1);
167	167	(4) the organization's financial information;
168	168	(5) the organization's contact information;
169	169	(6) a statement, signed under penalty of perjury by an
170	170	officer of the organization, that the organization meets all
171	171	criteria to qualify as an eligible organization, has fulfilled the
172	172	requirements for the previous calendar year, and intends to fulfill
173	173	the requirements for the next calendar year; and
174	174	(7) any other documentation requested by the
175	175	comptroller to verify eligibility or compliance with this section.
176	176	Sec. 171.704. DUTIES OF ELIGIBLE ORGANIZATION. (a) An
177	177	eligible organization shall:
178	178	(1) conduct a local, state, and national criminal
179	179	background check for all individuals working directly with children
180	180	in a program funded by designated contributions that includes the
181	181	use of:
182	182	(A) a commercial multistate and
183	183	multijurisdiction criminal records locator or other similar
184	184	commercial nationwide database; and
185	185	(B) the national sex offender registry database
186	186	maintained by the United States Department of Justice or a
187	187	successor agency;
188	188	(2) spend all designated contributions, other than the
189	189	amount described by Subdivision (3), to provide services for
190	190	residents of this state;
191	191	(3) spend no more than five percent of the total dollar
192	192	amount of designated contributions on administrative expenses; and
193	193	(4) annually submit to the comptroller:
194	194	(A) the report of an audit of the eligible
195	195	organization conducted by an independent certified public
196	196	accountant in accordance with generally accepted auditing
197	197	principles completed not later than the 180th day after the end of
198	198	the eligible organization's fiscal year; and
199	199	(B) a copy of the eligible organization's most
200	200	recent Form 990 filed with the Internal Revenue Service.
201	201	(b) On receipt of a designated contribution, an eligible
202	202	organization shall provide the entity making the contribution with
203	203	a certificate of contribution that includes:
204	204	(1) the entity's name;
205	205	(2) the eligible organization's name;
206	206	(3) the entity's federal employer identification
207	207	number, if applicable;
208	208	(4) the amount of the designated contribution; and
209	209	(5) the date the designated contribution was made.
210	210	Sec. 171.705. DUTIES OF COMPTROLLER. (a) The comptroller
211	211	shall:
212	212	(1) accept applications for designation or
213	213	redesignation as an eligible organization and provide that
214	214	designation to eligible applicants;
215	215	(2) revoke an organization's designation as an
216	216	eligible organization if the organization violates this subchapter
217	217	or fails to maintain the eligibility requirements of this
218	218	subchapter;
219	219	(3) publish information about the strong families
220	220	credit on the comptroller's website, including:
221	221	(A) the requirements and process for an
222	222	organization to be designated as an eligible organization; and
223	223	(B) a list of organizations currently designated
224	224	as eligible organizations; and
225	225	(4) require the return of designated contributions
226	226	made to an organization that has had the organization's designation
227	227	as an eligible organization revoked or that otherwise fails to
228	228	comply with the requirements of this subchapter.
229	229	(b) An organization that is required to return
230	230	contributions under Subsection (a)(4) is ineligible for
231	231	designation or redesignation as an eligible organization for a
232	232	period of 10 years beginning on the date the requirement is imposed.
233	233	(c) An organization whose designation as an eligible
234	234	organization lapses or is revoked for a reason other than the reason
235	235	described by Subsection (a)(4) may reapply for designation as an
236	236	eligible organization.
237	237	Sec. 171.706. AMOUNT OF CREDIT; LIMITATION ON TOTAL
238	238	CREDITS. (a) Subject to Subsections (b) and (c), the amount of a
239	239	taxable entity's credit for a report is equal to the lesser of:
240	240	(1) the amount of designated contributions made to
241	241	designated organizations during the period covered by the report;
242	242	or
243	243	(2) the amount of franchise tax due for the report
244	244	after applying all other applicable credits.
245	245	(b) For the 2024 state fiscal year, the maximum amount of
246	246	strong families credits that may be awarded is $25 million. For
247	247	each subsequent state fiscal year, the maximum amount of strong
248	248	families credits that may be awarded is:
249	249	(1) the same maximum amount allowed under this
250	250	subsection for the previous state fiscal year, if less than the
251	251	maximum amount of credits was awarded that fiscal year; or
252	252	(2) an amount equal to 110 percent of the maximum
253	253	amount allowed under this subsection for the previous state fiscal
254	254	year, if the maximum amount of credits was awarded that fiscal year.
255	255	(c) For the 2024 state fiscal year, each entity may make no
256	256	more than $2.5 million in designated contributions. For each
257	257	subsequent state fiscal year, each entity may make qualifying
258	258	contributions of not more than 110 percent of the amount allowed to
259	259	be made under this subsection for the previous state fiscal year.
260	260	(d) The comptroller by rule shall prescribe procedures by
261	261	which the comptroller will allocate strong families credits. The
262	262	procedures must provide that any credits are allocated to entities
263	263	that apply on a first-come, first-served basis.
264	264	Sec. 171.707. APPLICATION FOR CREDIT. (a) A taxable entity
265	265	must apply to claim a strong families credit under this subchapter
266	266	on or with the report covering the period in which the designated
267	267	contribution was made.
268	268	(b) The comptroller shall prescribe the form and method of
269	269	applying to claim a credit under this section. A taxable entity
270	270	must use this method in applying for the credit.
271	271	(c) The comptroller may award a credit to a taxable entity
272	272	that applies for the credit under Subsection (a) if the taxable
273	273	entity is eligible for the credit and the credit is available under
274	274	Section 171.706(b).
275	275	(d) The comptroller shall notify a taxable entity in writing
276	276	of the comptroller's decision to grant or deny the application
277	277	under Subsection (a). If the comptroller denies a taxable entity's
278	278	application, the comptroller shall include in the notice of denial
279	279	the reasons for the comptroller's decision.
280	280	Sec. 171.708. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable
281	281	entity may not convey, assign, or transfer a strong families credit
282	282	awarded under this subchapter to another taxable entity unless
283	283	substantially all of the assets of the taxable entity are conveyed,
284	284	assigned, or transferred in the same transaction.
285	285	Sec. 171.709. RULES. The comptroller may adopt rules and
286	286	procedures necessary to implement, administer, and enforce this
287	287	subchapter.
288	288	SECTION 4. Subtitle I, Title 2, Tax Code, is amended by
289	289	adding Chapter 203 to read as follows:
290	290	CHAPTER 203. STRONG FAMILIES TAX CREDIT
291	291	Sec. 203.001. DEFINITIONS. In this chapter, "designated
292	292	contribution," "eligible organization," and "strong families
293	293	credit" have the meanings assigned by Section 171.701.
294	294	Sec. 203.002. ELIGIBILITY. A producer that makes a
295	295	designated contribution that meets the requirements of Subchapter
296	296	N, Chapter 171, is entitled to apply for a strong families credit in
297	297	the amount and under the conditions provided by this chapter
298	298	against tax paid under Chapter 201 or 202.
299	299	Sec. 203.003. AMOUNT OF CREDIT; LIMITATIONS. (a) Subject
300	300	to Subsections (b) and (c), the amount of a producer's credit for a
301	301	state fiscal year is equal to the lesser of:
302	302	(1) the amount of designated contributions made to
303	303	eligible organizations during the state fiscal year; or
304	304	(2) the amount of taxes paid by the producer under
305	305	Chapter 201 or 202, as applicable, during the state fiscal year.
306	306	(b) The maximum amount of strong families credits that may
307	307	be awarded for a state fiscal year is the amount provided by Section
308	308	171.706(b).
309	309	(c) The maximum amount of designated contributions a
310	310	producer may make to all eligible organizations in a state fiscal
311	311	year is the amount provided by Section 171.706(c).
312	312	(d) The comptroller shall allocate strong families credits
313	313	as provided by Section 171.706(d).
314	314	Sec. 203.004. APPLICATION. (a) The person responsible for
315	315	paying the tax under Chapter 201 or 202 must apply to claim a strong
316	316	families credit against that tax.
317	317	(b) The comptroller shall prescribe the form and method of
318	318	applying to claim a credit under this section. The person
319	319	responsible for paying the tax must use this method in applying for
320	320	the credit.
321	321	(c) The comptroller may award a credit to a person who
322	322	applies for the credit under Subsection (a) if the person is
323	323	eligible for the credit and the credit is available under Section
324	324	171.706(b).
325	325	(d) The comptroller shall notify a person in writing of the
326	326	comptroller's decision to grant or deny the application under
327	327	Subsection (a). If the comptroller denies a person's application,
328	328	the comptroller shall include in the notice of denial the reasons
329	329	for the comptroller's decision.
330	330	Sec. 203.005. RULES. The comptroller may adopt rules and
331	331	procedures necessary to implement, administer, and enforce this
332	332	chapter.
333	333	SECTION 5. (a) An entity may apply for a credit under
334	334	Chapter 207, Alcoholic Beverage Code, as added by this Act, Chapter
335	335	230, Insurance Code, as added by this Act, Subchapter N, Chapter
336	336	171, Tax Code, as added by this Act, or Chapter 203, Tax Code, as
337	337	added by this Act, only for a designated contribution made on or
338	338	after January 1, 2024.
339	339	(b) Chapter 207, Alcoholic Beverage Code, as added by this
340	340	Act, Chapter 230, Insurance Code, as added by this Act, Subchapter
341	341	N, Chapter 171, Tax Code, as added by this Act, and Chapter 203, Tax
342	342	Code, as added by this Act, apply only to a report originally due on
343	343	or after January 1, 2024.
344	344	SECTION 6. This Act takes effect January 1, 2024.