| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
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. |