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  89R2465 CJC-D     By: Hall S.B. No. 1477       A BILL TO BE ENTITLED   AN ACT   relating to a franchise tax credit for a taxable entity that   participates in the federal electronic verification of employment   authorization program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 171, Tax Code, is amended by adding   Subchapter O to read as follows:   SUBCHAPTER O. TAX CREDIT FOR PARTICIPATION IN FEDERAL ELECTRONIC   VERIFICATION OF EMPLOYMENT AUTHORIZATION PROGRAM           Sec.   171.751.     DEFINITION. In this subchapter, "E-verify   program" has the meaning assigned by Section 673.001, Government   Code.           Sec.   171.752.     ENTITLEMENT TO CREDIT.   A taxable entity is   entitled to a credit in the amount and under the conditions provided   by this subchapter against the tax imposed under this chapter.           Sec.   171.753.     QUALIFICATION.   A taxable entity qualifies   for a credit under this subchapter if the taxable entity registers   with and participates in the E-verify program to verify employee   information for a period of at least 12 consecutive months.           Sec.   171.754.     AMOUNT OF CREDIT; LIMITATION.   (a) The amount   of the credit for a report is equal to the amount of franchise tax   due for the report after applying all other applicable credits.           (b)     A taxable entity may not claim more than one credit   under this subchapter.           Sec.   171.755.     APPLICATION FOR CREDIT.   (a)   A taxable entity   must apply for a credit under this subchapter on or with the report   for the period for which the credit is claimed.           (b)     A taxable entity must apply for the credit in the manner   prescribed by the comptroller and include with the application any   information requested by the comptroller to determine whether the   entity qualifies for the credit under this subchapter.           Sec.   171.756.     RULES.   The comptroller shall adopt rules   necessary to implement and administer this subchapter.          SECTION 2.  Subchapter O, Chapter 171, Tax Code, as added by   this Act, applies only to a report originally due on or after   January 1, 2026.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.