HBA-LJP, EDN H.B. 87 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 87
By: King, Phil
Ways & Means
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

Under the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, certain welfare recipients must work after
receiving assistance for two years.  Many people in below poverty level
households are without a vehicle, so transportation becomes a potential
barrier for people trying to make the transition from financial assistance
to self sufficiency.  House Bill 87 provides a tax credit to private
businesses that provide transportation to a person who is a recipient of
certain state financial aid. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 87 authorizes a corporation to claim a tax credit for an
expenditure made toward the cost of transportation services provided to a
person who is a recipient of either financial or nutritional assistance for
the support of dependent children and a participant in a work or employment
activity for recipients of financial assistance and services or the food
stamp employment and training program.  The eligible transportation
services include services to and from the location of the work, employment,
or training activity or program or for the provider of any child care
services necessary for a person to participate in the work, employment, or
training activity or  program.  A corporation is authorized to claim a tax
credit regardless of whether the corporation provides or pays for the
transportation services directly or donates money to a nonprofit entity
that uses the money only to provide or pay for the transportation services. 

The bill prohibits the total credit for a report from exceeding 50 percent
of the amount of net franchise tax due for the privilege period after any
other applicable tax credits.  The bill authorizes a corporation to claim a
credit for an expenditure made during an accounting period only against the
tax owed for the corresponding reporting period.  A corporation must apply
for a credit on or with the tax report for the period for which the credit
is claimed and  include with the application a copy of a written
certification from the Texas Workforce Commission that the person receiving
the transportation services is a recipient of either financial or
nutritional assistance for the support of dependent children and a
participant in a work or employment activity or the food stamp employment
and training program.  The bill requires the comptroller of public accounts
to adopt a form for the application for credit that a corporation uses when
applying for the credit.  Additionally, the bill prohibits a corporation
from conveying, assigning, or transferring the credit allowed to another
entity unless all of the assets of the corporation are conveyed, assigned,
or transferred in the same transaction. 

EFFECTIVE DATE

January 1, 2002.