Bill Text: TX HB525 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for wages paid to certain employees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-02-19 - Referred to Ways & Means [HB525 Detail]
Download: Texas-2015-HB525-Introduced.html
84R776 KLA-D | ||
By: Riddle | H.B. No. 525 |
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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. 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. 171.872. QUALIFICATION. A taxable entity qualifies | ||
for a credit under this subchapter for each employee who: | ||
(1) begins employment with the taxable entity on or | ||
after September 1, 2015, in a full-time employment position; | ||
(2) is a resident of this state; and | ||
(3) on the date the employee begins employment as | ||
described by Subdivision (1): | ||
(A) had been a resident of this state for the | ||
preceding five-year period; and | ||
(B) had not previously been employed by the | ||
taxable entity. | ||
Sec. 171.873. AMOUNT; LIMITATIONS. (a) The amount of the | ||
credit is 50 percent of the wages paid by the taxable entity for | ||
each employee described by Section 171.872. | ||
(b) A taxable entity may claim the credit only for wages | ||
paid to the employee described by Section 171.872 for a position | ||
located or based in this state. | ||
Sec. 171.874. 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. 171.875. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A | ||
taxable entity may claim a credit under this subchapter for wages | ||
paid during an accounting period only against the tax owed for the | ||
corresponding privilege period. | ||
SECTION 2. A taxable entity may claim the credit under | ||
Subchapter R, Chapter 171, Tax Code, as added by this Act, only for | ||
wages paid or incurred on or after September 1, 2015, and only on a | ||
franchise tax report due under Chapter 171, Tax Code, on or after | ||
January 1, 2016. | ||
SECTION 3. This Act takes effect January 1, 2016. |