Texas Comptroller of Public Accounts    STAR System


200207745R



STAR SUPERSEDED WITHOUT SUMMARY 

Accession No.(s): 200207745R

Document superseded on: 08/15/2013 



STATE OF TEXAS
COMPTROLLER OF PUBLIC ACCOUNTS
FRANCHISE TAX

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, 
if any. 

(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 
wages; 

(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   
SUPERSEDED: Y 
DOCUMENT TYPE: R 
DATE: 07/17/2002  
TAX TYPE: FRANCHISE