Bill Text: TX HB2833 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to a tax refund or credit for wages paid to certain employees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-27 - Referred to Ways & Means [HB2833 Detail]
Download: Texas-2017-HB2833-Introduced.html
85R5095 ADM-F | ||
By: Oliveira | H.B. No. 2833 |
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relating to a tax refund or credit for wages paid to certain | ||
employees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 111.109, Tax Code, is amended to read as | ||
follows: | ||
Sec. 111.109. TAX REFUND FOR WAGES PAID TO CERTAIN | ||
EMPLOYEES [ |
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(1) "Taxable entity" has the meaning assigned by | ||
Section 171.0002. | ||
(2) "Wages" has the meaning assigned by Section | ||
171.9261. | ||
(b) This section applies only to a person that is not a | ||
taxable entity or that is a taxable entity but does not owe any tax | ||
for a regular annual period because of the application of Section | ||
171.002(d)(2). | ||
(c) Subject to the limitations and conditions prescribed by | ||
this section, a person to which this section applies is entitled to | ||
a refund of each tax the person paid to this state that is | ||
administered by the comptroller the revenue of which is not | ||
constitutionally dedicated and all or part of which is deposited to | ||
the credit of the general revenue fund. | ||
(d) A person may receive a refund under this section only if | ||
the person: | ||
(1) paid or incurred wages for an employee who meets | ||
the requirements under Section 171.9263(a); | ||
(2) requests and receives in accordance with Section | ||
171.9264 certification from the Texas Workforce Commission that the | ||
employee meets the requirements under Section 171.9263(a); | ||
(3) files an application with the comptroller for the | ||
refund using a form promulgated by the comptroller; and | ||
(4) as a taxable entity, has not claimed a credit in | ||
relation to those wages on a franchise tax report under Subchapter | ||
W, Chapter 171. | ||
(e) The amount of the refund to which a person is entitled in | ||
relation to each employee is equal to the amount prescribed by | ||
Section 171.9265(a) or (b), as appropriate. | ||
(f) The total refund to which a person is entitled during a | ||
calendar year may not exceed the total amount of taxes described by | ||
Subsection (c) that the person paid to the state during that | ||
calendar year, after any other applicable credits. | ||
(g) A person may not convey, assign, or transfer the right | ||
to a refund allowed under this section to another person unless all | ||
of the assets of the person, or of a discrete unit of the person that | ||
paid or incurred the wages, are sold, conveyed, assigned, or | ||
transferred in the same transaction or in a related transaction, to | ||
a person that directly or indirectly owns, controls, or otherwise | ||
directs, wholly or partly, an interest in the person from which the | ||
right to the refund is conveyed, assigned, or transferred. | ||
(h) The comptroller shall adopt rules necessary to | ||
administer this section [ |
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SECTION 2. Chapter 171, Tax Code, is amended by adding | ||
Subchapter W to read as follows: | ||
SUBCHAPTER W. TAX CREDIT FOR WAGES PAID TO CERTAIN EMPLOYEES | ||
Sec. 171.9261. 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 of 1986. | ||
Sec. 171.9262. 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. 171.9263. QUALIFICATION. (a) A taxable entity | ||
qualifies for a credit under this subchapter for the wages paid or | ||
incurred by the taxable entity for an employee only if the | ||
commission certifies under Section 171.9264 that the employee is: | ||
(1) a resident of this state; and | ||
(2) a member of one of the following federal work | ||
opportunity tax credit targeted groups: | ||
(A) a qualified IV-A recipient, as defined by | ||
Section 51(d)(2), Internal Revenue Code of 1986, in effect for the | ||
federal tax year beginning January 1, 2018, and any regulations | ||
adopted under that code applicable to that period; | ||
(B) a qualified veteran, as defined by Section | ||
51(d)(3), Internal Revenue Code of 1986, in effect for the federal | ||
tax year beginning January 1, 2018, and any regulations adopted | ||
under that code applicable to that period; | ||
(C) a qualified supplemental nutrition | ||
assistance program benefits recipient, as defined by Section | ||
51(d)(8), Internal Revenue Code of 1986, in effect for the federal | ||
tax year beginning January 1, 2018, and any regulations adopted | ||
under that code applicable to that period; or | ||
(D) a long-term family assistance recipient, as | ||
defined by Section 51(d)(10), Internal Revenue Code of 1986, in | ||
effect for the federal tax year beginning January 1, 2018, and any | ||
regulations adopted under that code applicable to that period. | ||
(b) A taxable entity is not eligible for a credit on a report | ||
against the tax imposed under this chapter for wages paid or | ||
incurred during the period on which the report is based if the | ||
taxable entity, or a member of the combined group if the taxable | ||
entity is a combined group, received a refund in relation to those | ||
wages under Section 111.109. | ||
Sec. 171.9264. CERTIFICATION BY COMMISSION. (a) A taxable | ||
entity must request certification from the commission for each | ||
employee not later than the 28th day after the date the employee | ||
begins employment with the taxable entity. | ||
(b) The commission shall issue a certification to a taxable | ||
entity for each employee the commission determines meets the | ||
requirements under Section 171.9263(a). | ||
(c) The commission shall forward each certification to the | ||
comptroller. | ||
Sec. 171.9265. AMOUNTS; LIMITATION. (a) The amount of the | ||
credit in relation to each employee described by Section | ||
171.9263(a)(2)(A), (B), or (D) is equal to 20 percent of the first | ||
$10,000 in total wages paid or incurred by the taxable entity for | ||
that employee beginning on the date the employee begins employment | ||
and ending on the anniversary of that date. | ||
(b) The amount of the credit in relation to each employee | ||
described by Section 171.9263(a)(2)(C) is equal to 10 percent of | ||
the first $10,000 in total wages paid or incurred by the taxable | ||
entity for that employee beginning on the date the employee begins | ||
employment and ending on the anniversary of that date. | ||
(c) The total credit claimed under this subchapter for a | ||
report, including the amount of any carryforward credit under | ||
Section 171.9266, may not exceed the amount of tax due for the | ||
report after any other applicable credits. | ||
Sec. 171.9266. CARRYFORWARD. (a) If a taxable entity is | ||
eligible for a credit that exceeds the limitation under Section | ||
171.9265(c), 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 171.9265(c). | ||
Sec. 171.9267. 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. 171.9268. 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 of 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. 171.9269. RULES. The comptroller and the commission | ||
shall adopt rules necessary to administer this subchapter. | ||
SECTION 3. 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 tax refund [ |
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under Section 111.109, Tax Code, and the franchise tax credit | ||
program under Subchapter W, Chapter 171, Tax [ |
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SECTION 4. Section 301.0671, Labor Code, is amended to read | ||
as follows: | ||
Sec. 301.0671. FEDERAL WORK OPPORTUNITY TAX CREDIT AND | ||
STATE TAX REFUND OR CREDIT FOR CERTAIN EMPLOYERS. (a) The | ||
commission is the lead agency in promoting awareness of the federal | ||
work opportunity tax credit program and the state tax refund or | ||
credit for employers under Section 111.109, Tax Code, and | ||
Subchapter W, 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 | ||
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SECTION 5. 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, the | ||
commission through Project RIO shall 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 the tax refund program under | ||
Section 111.109, Tax Code, and the franchise tax credit program | ||
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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 6. Subchapter H, Chapter 301, Labor Code, is | ||
repealed. | ||
SECTION 7. The repeal of Subchapter H, Chapter 301, Labor | ||
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, 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, 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 8. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 9. This Act takes effect January 1, 2018. |