85R2510 GRM-D     By: Romero, Jr. H.B. No. 42       A BILL TO BE ENTITLED   AN ACT   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.