Bill Text: TX HB3270 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for wages paid to graduates of certain institutions of higher education.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-17 - Referred to Ways & Means [HB3270 Detail]
Download: Texas-2015-HB3270-Introduced.html
| 84R4833 GRM-D | ||
| By: Herrero | H.B. No. 3270 | |
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| relating to a franchise tax credit for wages paid to graduates of | ||
| certain institutions of higher education. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
| Subchapter P to read as follows: | ||
| SUBCHAPTER P. TAX CREDIT FOR WAGES PAID TO GRADUATES | ||
| OF CERTAIN INSTITUTIONS OF HIGHER EDUCATION | ||
| Sec. 171.801. DEFINITION. In this subchapter, "public or | ||
| private institution of higher education" means an institution of | ||
| higher education or a private or independent institution of higher | ||
| education as those terms are defined by Section 61.003, Education | ||
| Code. | ||
| Sec. 171.802. 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. 171.803. QUALIFICATION. A taxable entity qualifies | ||
| for a credit under this subchapter for each employee who: | ||
| (1) is a graduate of a public or private institution of | ||
| higher education at the time the employee is hired if the employee | ||
| attended a campus of that institution that is located in the same | ||
| county as the county in which the employee performs the employee's | ||
| primary job functions; or | ||
| (2) graduates from a public or private institution of | ||
| higher education during the time the employee is employed with the | ||
| taxable entity if the employee attended a campus of that | ||
| institution that is located in the same county as the county in | ||
| which the employee performs the employee's primary job functions. | ||
| Sec. 171.804. AMOUNT; LIMITATIONS. (a) The amount of the | ||
| credit is 10 percent of the wages paid by the taxable entity for | ||
| each employee described by Section 171.803. | ||
| (b) A taxable entity may claim the credit only for wages | ||
| paid to the employee described by Section 171.803: | ||
| (1) for a position located or based in this state; and | ||
| (2) after the employee graduates from the public or | ||
| private institution of higher education. | ||
| Sec. 171.805. APPLICATION FOR CREDIT. (a) A taxable entity | ||
| must apply for a credit under this subchapter on or with the tax | ||
| 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. | ||
| Sec. 171.806. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A | ||
| taxable entity may claim a credit under this subchapter for wages | ||
| paid during an accounting period only against the tax owed for the | ||
| corresponding privilege period. | ||
| SECTION 2. A taxable entity may claim the credit under | ||
| Subchapter P, Chapter 171, Tax Code, as added by this Act, only for | ||
| wages paid or incurred on or after the effective date of this Act | ||
| and only on a franchise tax report due under Chapter 171, Tax Code, | ||
| on or after January 1, 2016. | ||
| SECTION 3. This Act takes effect January 1, 2016. | ||
