| (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) For reports originally due before January 1, 2004, 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. For reports due on or after January 1, 2004, a corporation may not claim a credit that exceeds 50% of the amount of franchise tax due, before any other applicable tax 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. |
