Bill Text: TX HB42 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for certain taxable entities offering postsecondary tuition assistance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-08 - Left pending in committee [HB42 Detail]
Download: Texas-2017-HB42-Introduced.html
85R2510 GRM-D | ||
By: Romero, Jr. | H.B. No. 42 |
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relating to a franchise tax credit for certain taxable entities | ||
offering postsecondary tuition assistance. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter L-1 to read as follows: | ||
SUBCHAPTER L-1. TAX CREDIT FOR CERTAIN ENTITIES THAT PROVIDE | ||
TUITION ASSISTANCE | ||
Sec. 171.621. DEFINITIONS. In this subchapter: | ||
(1) "Neighborhood empowerment zone" has the meaning | ||
assigned to "zone" by Section 378.001, Local Government Code. | ||
(2) "Postsecondary educational institution" means any | ||
public or private institution that provides courses of instruction | ||
beyond that offered in secondary schools, including proprietary, | ||
vocational, and technical schools. | ||
Sec. 171.622. ELIGIBILITY FOR CREDIT. A taxable entity is | ||
entitled to a credit in the amount and under the conditions and | ||
limitations provided by this subchapter against the tax imposed | ||
under this chapter. | ||
Sec. 171.623. QUALIFICATION. A taxable entity qualifies | ||
for a credit under this subchapter if: | ||
(1) the taxable entity provides tuition assistance for | ||
an employee attending a postsecondary educational institution; | ||
(2) the taxable entity is located in a neighborhood | ||
empowerment zone; and | ||
(3) the amount of the taxable entity's total revenue | ||
from its entire business for the reporting period for which the | ||
credit is claimed is less than $250 million. | ||
Sec. 171.624. AMOUNT; LIMITATION. (a) Except as otherwise | ||
provided by this section, the amount of the credit for the period | ||
covered by a tax report is equal to the lesser of the amount of | ||
tuition assistance provided to all employees during the period and: | ||
(1) $10,000, if the amount of the taxable entity's | ||
total revenue from its entire business for the period is less than | ||
$10 million; | ||
(2) the greater of $10,000 and 50 percent of the amount | ||
of franchise tax due for the report after all other applicable tax | ||
credits, if the taxable entity's total revenue from its entire | ||
business for the period is at least $10 million but less than $50 | ||
million; and | ||
(3) the lesser of $50,000 and 50 percent of the amount | ||
of franchise tax due for the report after all other applicable tax | ||
credits, if the taxable entity's total revenue from its entire | ||
business for the period is at least $50 million but less than $250 | ||
million. | ||
(b) The total credit claimed on a tax report may not exceed | ||
the amount of franchise tax due for the report after all other | ||
applicable tax credits. | ||
(c) A taxable entity may claim a credit under this | ||
subchapter for an expenditure made during a reporting period only | ||
against the tax owed for the period. | ||
Sec. 171.625. 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 adopt a form for the application | ||
for the credit. A taxable entity must use the form in applying for | ||
the credit. | ||
Sec. 171.626. ASSIGNMENT PROHIBITED. A taxable entity may | ||
not convey, assign, or transfer the credit allowed under this | ||
subchapter to another taxable entity unless all of the assets of the | ||
taxable entity are conveyed, assigned, or transferred in the same | ||
transaction. | ||
Sec. 171.627. RULES. The comptroller shall adopt rules | ||
necessary to implement this subchapter. | ||
Sec. 171.628. EXPIRATION. This subchapter expires December | ||
31, 2022. | ||
SECTION 2. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2018. |