Texas Comptroller of Public Accounts STAR System
STAR SUPERSEDED WITHOUT SUMMARY
Accession No.(s): 200207745R
Document superseded on: 08/15/2013
STATE OF TEXAS
COMPTROLLER OF PUBLIC ACCOUNTS
Section 3.569. Texas Youth Commission Credit.
(a) Effective date. This section is effective for reports originally due on or
after January 1, 1996, and applies only for wages paid or incurred on or after
January 1, 1996.
(b) Definitions. The following terms, when used in this section, shall have
the following meanings, unless the context clearly indicates otherwise.
(1) Due date--The due date of the franchise tax report, including extensions,
(2) Eligible child--A person who:
(A) is committed to the Texas Youth Commission (TYC) under the Family Code,
Title 3, other than a commitment under a determinate sentence under the Family
Code, sec. 54.04(d)(3), sec. 54.04(m), or sec. 54.05(f); and
(B) resides at a facility of the TYC.
(c) Amount of credit--eligible child.
(1) A corporation may claim a credit on its report for 10% of the wages the
corporation paid to an eligible child, or to the TYC for the benefit of the
child, during the period upon which the report is based.
(2) By the due date, the eligible child must have been continuously employed
by the corporation for at least six months. However, the eligible child need
not be employed on the due date.
(3) For purposes of claiming the credit, there is no maximum limit on the
length of time the eligible child may be employed.
(4) A certification from TYC must accompany the report and must be filed on or
before the due date of the report. The certification must include:
(A) the name of the corporation paying the wages;
(B) the name of each eligible child to which or for which the corporation paid
(C) the amount of wages paid by the corporation to each eligible child or to
TYC for the benefit of the eligible child during the period upon which the
report is based; and
(D) the date each wage was paid.
(d) Amount of credit--former eligible child.
(1) On or before the due date of the report, a corporation may claim a credit
on its report for 10% of the wages the corporation paid to a former eligible
child (employee) during the period upon which the report is based.
(2) By the due date, the employee must have been continuously employed by the
corporation for at least six months while the employee was an eligible child
and for at least one year after the employee was released from commitment to
TYC or released under supervision by TYC. However, the person need not be
employed on the due date.
(3) The credit may only be claimed for one year's wages for each employee. The
credit does not have to be claimed for the first year's wages after release.
(4) The corporation must be able to prove, upon audit, that the employment is
substantially similar to, requires more skill than, or provides greater
opportunity than the employee had with the corporation while the employee was
an eligible child. This can be done by showing that the hours worked per week
and the hourly rate are equal to or greater than the hours worked per week and
hourly rate while the employee was an eligible child.
(e) Limitations--eligible child and former eligible child.
(1) For reports that are originally due before January 1, 2002, the credit may
not exceed 50% of the amount of tax due for the report after all other credits
and deductions, including, but not limited to, the business loss carryover, are
taken. For reports that are originally due on or after January 1, 2002, the
credit may not exceed 50% of the amount of franchise tax due for the report
before any other tax credits are applied.
(2) The credit must be claimed on the report form.
(3) Only one credit for each wage paid may be taken.
Effective Date: July 17, 2002.
Filed with Secretary of State: June 27, 2002.
Comptroller of Public Accounts
ACCESSION NUMBER: 200207745R
DOCUMENT TYPE: R
TAX TYPE: FRANCHISE