34 TAC §3.580
The Comptroller of Public Accounts adopts a new §3.580,
concerning credit for hiring the disabled, with changes to the proposed text
as published in the May 24, 2002, issue of the
Texas
Register
(27 TexReg 4544).
The section has been renamed to Credit for Hiring Persons with Disabilities
at the suggestion of the Texas Rehabilitation Commission.
In accordance with Senate Bill 63, 77th Legislature, 2001, the new section
provides guidelines for corporations that are eligible for the credit for
hiring persons with disabilities.
No other comments were received regarding adoption of the new section.
This new section is adopted under Tax Code, §111.002, which
provides the comptroller with the authority to prescribe, adopt, and enforce
rules relating to the administration and enforcement of the provisions of
Tax Code, Title 2.
The new section implements Tax Code, §§171.851 through 171.856.
§3.580.Credit for Hiring Persons with Disabilities.
(a)
Effective date. This section is effective for reports originally
due on or after January 1, 2002, and applies only to wages paid after December
31, 2001.
(b)
Credit. Subject to other provisions in this section, a
corporation may claim a credit on its franchise tax report for 10% of the
wages that the corporation pays to each employee who meets the following qualifications:
(1)
the employee, when hired, is either
(A)
eligible under 42 U.S.C. §1382 for supplemental security
income benefits on the basis of disability or blindness; or
(B)
a recipient of social security disability insurance benefits;
(2)
the employee is originally employed after December 31,
2001, for a position that is located or based in Texas and remains continuously
employed with the corporation in a position that is located or based in Texas
for at least six months;
(3)
the employee earns at least the minimum wage;
(4)
the employee works an average of at least 20 hours a week;
and
(5)
the employee receives the same benefits that the corporation
provides to its other workers.
(c)
Limitations.
(1)
A corporation may claim the credit only for wages that
the corporation has paid to a qualified employee:
(A)
for a position that is located or based in Texas; and
(B)
for work that is performed before the second anniversary
date of that qualified employee's original date of employment.
(2)
A corporation may not claim a credit that exceeds 50% of
the amount of net franchise tax due, after any other applicable credits are
taken, for the report on which the credit is claimed.
(d)
Accounting period. The corporation must use the period
upon which earned surplus is based to determine which wages will be considered
in computing the credit, even if the tax due on net taxable capital exceeds
the tax due on net taxable earned surplus.
(e)
Application for Credit. A corporation must claim the credit
on forms that the comptroller requires and must file the forms with the franchise
tax report on which the credit is claimed.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on July 1, 2002.
TRD-200204152
Martin Cherry
Deputy General Counsel for Taxation
Comptroller of Public Accounts
Effective date: July 21, 2002
Proposal publication date: May 24, 2002
For further information, please call: (512) 475-0387