| 1 | 1 | | 88R2828 CJC-D |
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| 2 | 2 | | By: Hall S.B. No. 356 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a franchise tax credit for a taxable entity that |
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| 8 | 8 | | participates in the federal electronic verification of employment |
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| 9 | 9 | | authorization program. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 12 | 12 | | Subchapter K to read as follows: |
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| 13 | 13 | | SUBCHAPTER K. TAX CREDIT FOR PARTICIPATION IN FEDERAL ELECTRONIC |
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| 14 | 14 | | VERIFICATION OF EMPLOYMENT AUTHORIZATION PROGRAM |
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| 15 | 15 | | Sec. 171.551. DEFINITION. In this subchapter, "E-verify |
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| 16 | 16 | | program" has the meaning assigned by Section 673.001, Government |
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| 17 | 17 | | Code. |
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| 18 | 18 | | Sec. 171.552. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 19 | 19 | | entitled to a credit in the amount and under the conditions provided |
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| 20 | 20 | | by this subchapter against the tax imposed under this chapter. |
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| 21 | 21 | | Sec. 171.553. QUALIFICATION. A taxable entity qualifies |
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| 22 | 22 | | for a credit under this subchapter if the taxable entity registers |
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| 23 | 23 | | with and participates in the E-verify program to verify employee |
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| 24 | 24 | | information for a period of at least 12 consecutive months. |
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| 25 | 25 | | Sec. 171.554. AMOUNT OF CREDIT; LIMITATION. (a) The amount |
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| 26 | 26 | | of the credit for a report is equal to the amount of franchise tax |
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| 27 | 27 | | due for the report after applying all other applicable credits. |
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| 28 | 28 | | (b) A taxable entity may not claim more than one credit |
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| 29 | 29 | | under this subchapter. |
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| 30 | 30 | | Sec. 171.555. APPLICATION FOR CREDIT. (a) A taxable entity |
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| 31 | 31 | | must apply for a credit under this subchapter on or with the report |
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| 32 | 32 | | for the period for which the credit is claimed. |
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| 33 | 33 | | (b) The comptroller shall promulgate a form for the |
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| 34 | 34 | | application for the credit. A taxable entity must use the form in |
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| 35 | 35 | | applying for the credit. |
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| 36 | 36 | | (c) The comptroller may require a taxable entity to submit |
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| 37 | 37 | | with an application any information the comptroller determines is |
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| 38 | 38 | | necessary to determine whether the taxable entity qualifies for the |
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| 39 | 39 | | credit under Section 171.553. |
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| 40 | 40 | | Sec. 171.556. RULES. The comptroller shall adopt rules |
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| 41 | 41 | | necessary to implement and administer this subchapter. |
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| 42 | 42 | | SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by |
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| 43 | 43 | | this Act, applies only to a report originally due on or after |
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| 44 | 44 | | January 1, 2024. |
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| 45 | 45 | | SECTION 3. This Act takes effect immediately if it receives |
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| 46 | 46 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 47 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 48 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 49 | | Act takes effect September 1, 2023. |
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