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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion of certain payments from total revenue |
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for purposes of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1011, Tax Code, is amended by adding |
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Subsection (y) to read as follows: |
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(y) A taxable entity that is primarily engaged in the |
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business of information technology staffing shall exclude from its |
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total revenue, to the extent included under Subsection (c)(1)(A), |
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(c)(2)(A), or (c)(3), subcontracting payments made under a contract |
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or subcontract entered into by the taxable entity to provide |
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services, labor, or materials in connection with the actual or |
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proposed design of software or the provision of information |
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technology services. |
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SECTION 2. Section 171.1011(y), Tax Code, as added by this |
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Act, applies only to a report originally due on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2018. |