88R6674 SRA-D
 
  By: Moody H.B. No. 4482
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for a taxable entity that employs
  certain former offenders.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter N to read as follows:
  SUBCHAPTER N.  TAX CREDIT FOR EMPLOYERS WHO HIRE FORMER OFFENDERS
         Sec. 171.701.  DEFINITION. In this subchapter, "former
  offender" means a person who was convicted of a state or federal
  felony offense and incarcerated as a result of that conviction. The
  term includes a person who was incarcerated as a result of a
  violation of the conditions of parole or mandatory supervision
  related to the conviction.
         Sec. 171.702.  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. 171.703.  QUALIFICATION. A taxable entity qualifies
  for a credit under this subchapter if the taxable entity:
               (1)  employs a former offender within 12 months of the
  former offender's release from the offender's first term of
  incarceration for at least 40 hours of work per week; and
               (2)  pays the former offender a wage that, when
  computed as an hourly wage, meets or exceeds the federal minimum
  wage established under Section 6, Fair Labor Standards Act of 1938
  (29 U.S.C. Section 206).
         Sec. 171.704.  AMOUNT OF CREDIT. A taxable entity may claim
  a credit on a report in the amount of:
               (1)  $3,000 for each former offender whose first
  anniversary of employment by the taxable entity occurs during the
  period covered by the report, if the requirements of Section
  171.703 are met at all times during the former offender's first year
  of employment by the taxable entity; 
               (2)  $2,000 for each former offender whose second
  anniversary of employment by the taxable entity occurs during the
  period covered by the report, if requirements of Section 171.703
  are met at all times during the former offender's second year of
  employment by the taxable entity; and
               (3)  $1,000 for each former offender whose third
  anniversary of employment by the taxable entity occurs during the
  period covered by the report, if the requirements of Section
  171.703 are met at all times during the former offender's third year
  of employment by the taxable entity. 
         Sec. 171.705.  APPLICATION FOR CREDIT.  (a)  A taxable entity
  must apply for a credit under this subchapter on or with the report
  for which the credit is claimed.
         (b)  The comptroller shall prescribe the form and method of
  applying for a credit under this section.  A taxable entity must use
  the form and method prescribed by the comptroller to apply for the
  credit.
         Sec. 171.706.  ASSIGNMENT PROHIBITED; EXEMPTION.  A taxable
  entity may not convey, assign, or transfer the credit allowed under
  this subchapter to another taxable entity unless substantially all
  of the assets of the taxable entity are conveyed, assigned, or
  transferred in the same transaction.
         Sec. 171.707.  RULES.  The comptroller shall adopt rules
  necessary to implement this subchapter.
         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, 2024.