Bill Text: TX HB3305 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for wages paid to certain employees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-30 - Left pending in committee [HB3305 Detail]
Download: Texas-2015-HB3305-Introduced.html
84R10829 CBH-F | ||
By: Oliveira | H.B. No. 3305 |
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relating to a franchise tax credit for wages paid to certain | ||
employees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter R to read as follows: | ||
SUBCHAPTER R. TAX CREDIT FOR WAGES PAID TO CERTAIN EMPLOYEES | ||
Sec. 171.871. DEFINITIONS. In this subchapter: | ||
(1) "Commission" means the Texas Workforce | ||
Commission. | ||
(2) "Wages" means payments described by Sections | ||
51(c)(1), (2), and (3), Internal Revenue Code. | ||
Sec. 171.872. 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. 171.873. QUALIFICATION. A taxable entity qualifies | ||
for a credit under this subchapter for the wages paid or incurred by | ||
the taxable entity for the services of each employee who: | ||
(1) is a resident of this state; and | ||
(2) at the time the person is hired by the taxable | ||
entity: | ||
(A) has been issued a document by the commission | ||
stating that the individual is a Qualified IV-A recipient as | ||
defined by 26 U.S.C. Section 51(d)(2) or is otherwise a member of a | ||
family that receives financial assistance and services under | ||
Chapter 31 or 34, Human Resources Code; | ||
(B) served on active duty in the United States | ||
armed forces and was discharged or released from active duty after | ||
September 11, 2001; | ||
(C) is at least 18 years of age but younger than | ||
25 years of age, is unemployed, and has not been enrolled in an | ||
educational institution for at least six months; | ||
(D) had exhausted the person's unemployment | ||
compensation benefits at any time during the preceding 18 months | ||
and is unemployed; or | ||
(E) is unemployed and receiving unemployment | ||
compensation benefits. | ||
Sec. 171.874. CONFIRMATION OF ELIGIBILITY. (a) A taxable | ||
entity is not entitled to the credit under this subchapter for wages | ||
paid or incurred for the services of an employee unless the taxable | ||
entity requests and receives a confirmation from the commission | ||
that the employee meets the requirements under Section 171.873. | ||
(b) A taxable entity must request confirmation for each | ||
employee for which the person intends to claim the credit not later | ||
than the 60th day after the date the employee begins employment with | ||
the taxable entity. | ||
(c) The commission shall promulgate an online form that a | ||
taxable entity must use to request the certification. | ||
(d) A taxable entity is considered to have received the | ||
confirmation that the employee meets the requirements under Section | ||
171.873 if the taxable entity does not receive from the commission a | ||
confirmation or a denial of confirmation not later than the 61st day | ||
after the date the taxable entity submitted the original request | ||
for the confirmation. | ||
(e) The commission shall forward each confirmation to the | ||
comptroller. | ||
(f) The Health and Human Services Commission shall provide | ||
to the commission information necessary for the commission to | ||
confirm that an employee meets the requirements under Section | ||
171.873. | ||
Sec. 171.875. AMOUNT; LIMITATIONS. (a) The amount of the | ||
credit in relation to each employee is equal to the lesser of | ||
$10,000 or 20 percent of the wages paid or incurred by the taxable | ||
entity for the services of that employee beginning on the date the | ||
employee begins employment and ending on the anniversary of that | ||
date. | ||
(b) The total credit claimed under this subchapter for a | ||
report, including the amount of any carryforward credit under | ||
Section 171.876, may not exceed the amount of franchise tax due for | ||
the report after any other applicable credits. | ||
Sec. 171.876. CARRYFORWARD. (a) If a taxable entity is | ||
eligible for a credit that exceeds the limitation under Section | ||
171.875(b), the taxable entity may carry the unused credit forward | ||
for not more than five consecutive reports. | ||
(b) A carryforward is considered the remaining portion of a | ||
credit that cannot be claimed in the current year because of the | ||
limitation under Section 171.875(b). | ||
Sec. 171.877. 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. 171.878. ASSIGNMENT PROHIBITED. A taxable entity may | ||
not convey, assign, or transfer a credit allowed under this | ||
subchapter to another entity unless all of the assets of the taxable | ||
entity, or a discrete unit of the taxable entity that paid or | ||
incurred the wages, are sold, conveyed, assigned, or transferred in | ||
the same transaction or in a related transaction, to a taxable | ||
entity that directly or indirectly owns, controls, or otherwise | ||
directs, wholly or partly, an interest in the taxable entity from | ||
which the credit is conveyed, assigned, or transferred. | ||
Sec. 171.879. RULES. The comptroller and the commission | ||
shall adopt rules necessary to administer this subchapter. | ||
SECTION 2. Section 19.011(a), Education Code, is amended to | ||
read as follows: | ||
(a) In order to achieve the goals stated in Section 19.003, | ||
the district with the cooperation of the Health and Human Services | ||
Commission, the Texas Workforce Investment Council, the Texas | ||
Workforce Commission, the Texas Economic Development and Tourism | ||
Office, and the department shall provide persons confined or | ||
imprisoned in the department: | ||
(1) information from local workforce [ |
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development boards on job training and employment referral | ||
services; and | ||
(2) information on the franchise tax credit [ |
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SECTION 3. Section 301.0671, Labor Code, is amended to read | ||
as follows: | ||
Sec. 301.0671. FEDERAL WORK OPPORTUNITY TAX CREDIT AND | ||
FRANCHISE [ |
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The commission is the lead agency in promoting awareness of the | ||
federal work opportunity tax credit program and the franchise | ||
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Chapter 171, Tax Code [ |
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(b) The commission, in coordination with the comptroller's | ||
office and the Health and Human Services Commission [ |
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educational materials designed to increase awareness of the tax | ||
credits [ |
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encourage employers to hire recipients of the financial assistance | ||
program [ |
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Human Resources Code. | ||
SECTION 4. Section 306.007(a), Labor Code, is amended to | ||
read as follows: | ||
(a) To assist in the reintegration into the labor force of | ||
persons formerly sentenced to the correctional institutions | ||
division or committed to the Texas Juvenile Justice Department | ||
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provide: | ||
(1) to those persons: | ||
(A) information from local workforce development | ||
boards on job training and employment referral services; | ||
(B) information from the Department of State | ||
Health Services on substance abuse treatment services; | ||
(C) information from the Texas Department of | ||
Housing and Community Affairs on housing services; | ||
(D) information from the Texas Veterans | ||
Commission on services for veterans; and | ||
(E) information on franchise tax credits for | ||
employers [ |
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171, Tax Code [ |
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(2) to the employers and potential employers of those | ||
persons: | ||
(A) information from the Texas Economic | ||
Development and Tourism Office on the enterprise zone program; and | ||
(B) information from local workforce development | ||
boards on services listed in Section 2308.304, Government Code. | ||
SECTION 5. The following are repealed: | ||
(1) Subchapter H, Chapter 301, Labor Code; and | ||
(2) Section 111.109, Tax Code. | ||
SECTION 6. The repeal of Subchapter H, Chapter 301, Labor | ||
Code, and Section 111.109, Tax Code, by this Act does not affect an | ||
eligible person's right to claim a refund of state taxes that was | ||
established under Subchapter H, Chapter 301, Labor Code, and | ||
Section 111.109, Tax Code, before the effective date of this Act. An | ||
eligible person's right to claim a refund of state taxes that was | ||
established under Subchapter H, Chapter 301, Labor Code, and | ||
Section 111.109, Tax Code, before the effective date of this Act is | ||
governed by the law in effect on the date the right to claim the | ||
refund was established, and the former law is continued in effect | ||
for that purpose. | ||
SECTION 7. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 8. This Act takes effect January 1, 2016. |