Bill Text: TX SB1477 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for a taxable entity that participates in the federal electronic verification of employment authorization program.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-20 - Filed [SB1477 Detail]
Download: Texas-2025-SB1477-Introduced.html
| 89R2465 CJC-D | ||
| By: Hall | S.B. No. 1477 | |
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| 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 O to read as follows: | ||
| SUBCHAPTER O. TAX CREDIT FOR PARTICIPATION IN FEDERAL ELECTRONIC | ||
| VERIFICATION OF EMPLOYMENT AUTHORIZATION PROGRAM | ||
| Sec. 171.751. DEFINITION. In this subchapter, "E-verify | ||
| program" has the meaning assigned by Section 673.001, Government | ||
| Code. | ||
| Sec. 171.752. 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. 171.753. 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. 171.754. 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. 171.755. 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) A taxable entity must apply for the credit in the manner | ||
| prescribed by the comptroller and include with the application any | ||
| information requested by the comptroller to determine whether the | ||
| entity qualifies for the credit under this subchapter. | ||
| Sec. 171.756. RULES. The comptroller shall adopt rules | ||
| necessary to implement and administer this subchapter. | ||
| SECTION 2. Subchapter O, Chapter 171, Tax Code, as added by | ||
| this Act, applies only to a report originally due on or after | ||
| January 1, 2026. | ||
| 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, 2025. | ||
