Bill Text: TX HB3823 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to a franchise tax credit for taxable entities that provide paid family care leave.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-04-30 - Committee report sent to Calendars [HB3823 Detail]
Download: Texas-2019-HB3823-Comm_Sub.html
86R23434 GRM-D | |||
By: Sherman, Sr., Turner of Tarrant, Burrows, | H.B. No. 3823 | ||
Zerwas, Davis of Dallas, et al. | |||
Substitute the following for H.B. No. 3823: | |||
By: Wray | C.S.H.B. No. 3823 |
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relating to a franchise tax credit for taxable entities that | ||
provide paid family care leave. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. This Act may be cited as the Family First Act. | ||
SECTION 2. Chapter 171, Tax Code, is amended by adding | ||
Subchapter X to read as follows: | ||
SUBCHAPTER X. TAX CREDIT FOR PAID FAMILY CARE LEAVE | ||
Sec. 171.9281. DEFINITIONS. In this subchapter: | ||
(1) "Employee" means an individual who performs | ||
services for an employer for compensation under an oral or written | ||
contract of hire, whether express or implied. The term does not | ||
include an independent contractor. | ||
(2) "Infant" means a child younger than one year of | ||
age. | ||
Sec. 171.9282. 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. 171.9283. QUALIFICATION. A taxable entity with an | ||
average of not more than 1,500 employees during the period on which | ||
the report is based qualifies for a credit under this subchapter if | ||
the taxable entity provides paid family care leave to an employee | ||
according to a policy adopted by the taxable entity under which an | ||
employee is entitled to at least: | ||
(1) four weeks of paid leave following giving birth to | ||
an infant; | ||
(2) two weeks of paid leave following the birth of the | ||
employee's infant, if Subdivision (1) does not apply to the | ||
employee; and | ||
(3) two weeks of paid leave following the adoption of | ||
an infant by the employee or placement by the Department of Family | ||
and Protective Services of an infant in substitute care with the | ||
employee. | ||
Sec. 171.9284. AMOUNT OF CREDIT. The amount of the credit | ||
for a tax report is equal to the lesser of: | ||
(1) twice the amount of the costs attributable to | ||
providing paid family care leave described by Section 171.9283 to | ||
employees during the accounting period on which the report is | ||
based; or | ||
(2) the amount of franchise tax due for the report | ||
after applying all other applicable credits. | ||
Sec. 171.9285. 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. 171.9286. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A | ||
taxable entity may claim a credit under this subchapter for a tax | ||
report only in connection with paid family care leave provided to an | ||
employee during the accounting period on which the report is based. | ||
Sec. 171.9287. RULES. The comptroller shall adopt rules | ||
regarding the manner by which a taxable entity may demonstrate the | ||
costs attributable to providing paid family care leave for purposes | ||
of Section 171.9284. | ||
SECTION 3. This Act applies only to a tax report originally | ||
due on or after the effective date of this Act. | ||
SECTION 4. This Act takes effect January 1, 2020. |