Bill Text: TX HB3608 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to a franchise tax credit for contributions to programs for at-risk youth.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-26 - Left pending in committee [HB3608 Detail]
Download: Texas-2011-HB3608-Introduced.html
82R5802 MXM-D | ||
By: Kuempel | H.B. No. 3608 |
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relating to a franchise tax credit for contributions to programs | ||
for at-risk youth. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter T to read as follows: | ||
SUBCHAPTER T. TAX CREDIT FOR CONTRIBUTIONS TO PROGRAMS FOR | ||
AT-RISK YOUTH | ||
Sec. 171.871. DESCRIPTION OF LOCAL COMMUNITY. (a) The | ||
local community of a taxable entity eligible for a credit under this | ||
subchapter is, except as provided by Subsection (b): | ||
(1) the municipality in which the headquarters of the | ||
taxable entity is located; or | ||
(2) if the headquarters of the taxable entity is not | ||
located in a municipality, the county in which the taxable entity's | ||
headquarters is located. | ||
(b) A taxable entity with a facility that is not located in | ||
the local community described by Subsection (a) may designate its | ||
contribution as originating from that facility. The local | ||
community of a taxable entity that makes this designation is: | ||
(1) the municipality in which the designated facility | ||
is located; or | ||
(2) if the designated facility is not located in a | ||
municipality, the county in which the designated facility is | ||
located. | ||
Sec. 171.872. ELIGIBILITY. A taxable entity is eligible | ||
for a credit against the tax imposed under this chapter in the | ||
amount and under the conditions and limitations provided by this | ||
subchapter. | ||
Sec. 171.873. CONTRIBUTIONS ELIGIBLE FOR CREDIT. (a) A | ||
taxable entity may claim a credit under this subchapter only for a | ||
contribution to a program designated by its local community, as | ||
described by Section 171.871, that provides services described by | ||
Subsection (b) for: | ||
(1) children in at-risk situations and the families of | ||
those children as described by Subchapter D, Chapter 264, Family | ||
Code; or | ||
(2) children who qualify, under criteria developed by | ||
the local community, as at-risk youth and the families of those | ||
children. | ||
(b) Services provided by a program described by Subsection | ||
(a) may include only: | ||
(1) services described by Section 264.302(f), Family | ||
Code; and | ||
(2) other services identified by the local community | ||
relating to: | ||
(A) the education, training, and career | ||
development of at-risk youth; and | ||
(B) the provision of community service by at-risk | ||
youth. | ||
Sec. 171.874. LIMITATIONS ON CREDIT. (a) Subject to the | ||
limitations of this subchapter, the amount of the credit is equal to | ||
the amount of the contribution made by the taxable entity. | ||
(b) The total credit under this subchapter for a report may | ||
not exceed $5,000 of franchise tax due for the report. | ||
(c) A taxable entity may claim a credit under this | ||
subchapter for a contribution made during an accounting period only | ||
against the tax owed for the corresponding reporting period. | ||
Sec. 171.875. 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) The comptroller shall adopt a form for the application | ||
for the credit. A taxable entity must use the form in applying for | ||
the credit. | ||
Sec. 171.876. ASSIGNMENT PROHIBITED. A taxable entity may | ||
not convey, assign, or transfer the credit allowed under this | ||
subchapter to another entity unless all of the assets of the taxable | ||
entity are conveyed, assigned, or transferred in the same | ||
transaction. | ||
Sec. 171.877. LIMITATION ON USE OF QUALIFYING | ||
CONTRIBUTIONS. A local community, as described by Section 171.871, | ||
that receives contributions for which a taxable entity qualifies | ||
for a credit under this subchapter may use those contributions only | ||
for the program designated by the local community to provide | ||
services to at-risk youth described by Section 171.873. The program | ||
may provide services to at-risk youth who do not reside in the local | ||
community. | ||
SECTION 2. (a) This Act applies only to a report due on or | ||
after the effective date of this Act. | ||
(b) A taxable entity may claim a credit under Subchapter T, | ||
Chapter 171, Tax Code, as added by this Act, only for a contribution | ||
made on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2012. |