88R2828 CJC-D
By: Hall S.B. No. 356
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for a taxable entity that
participates in the federal electronic verification of employment
authorization program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. TAX CREDIT FOR PARTICIPATION IN FEDERAL ELECTRONIC
VERIFICATION OF EMPLOYMENT AUTHORIZATION PROGRAM
Sec. 171.551. DEFINITION. In this subchapter, "E-verify
program" has the meaning assigned by Section 673.001, Government
Code.
Sec. 171.552. 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. 171.553. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if the taxable entity registers
with and participates in the E-verify program to verify employee
information for a period of at least 12 consecutive months.
Sec. 171.554. AMOUNT OF CREDIT; LIMITATION. (a) The amount
of the credit for a report is equal to the amount of franchise tax
due for the report after applying all other applicable credits.
(b) A taxable entity may not claim more than one credit
under this subchapter.
Sec. 171.555. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the report
for the period for which the credit is claimed.
(b) The comptroller shall promulgate a form for the
application for the credit. A taxable entity must use the form in
applying 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 qualifies for the
credit under Section 171.553.
Sec. 171.556. RULES. The comptroller shall adopt rules
necessary to implement and administer this subchapter.
SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by
this Act, applies only to a report originally due on or after
January 1, 2024.
SECTION 3. 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.