H.B. No. 4765

	AN ACT
	relating to the computation of the franchise tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  (a)  Section 171.002(d), Tax Code, is amended to
	read as follows:
	(d)  A taxable entity is not required to pay any tax and is
	not considered to owe any tax for a period if:
	(1)  the amount of tax computed for the taxable entity
	is less than $1,000; or
	(2)  the amount of the taxable entity's total revenue
	from its entire business is less than or equal to $1 million
	[$300,000] or the amount determined under Section 171.006 per
	12-month period on which margin is based.
	(b)  This section takes effect only if H.B. No. 2154, Acts of
	the 81st Legislature, Regular Session, 2009, amends Section
	155.0211, Tax Code, in a manner that results in an increase in the
	revenue from the tax under that section during the state fiscal
	biennium beginning September 1, 2009, that is attributable to that
	change, and that Act is enacted and becomes law. If H.B. No. 2154,
	Acts of the 81st Legislature, Regular Session, 2009, does not amend
	Section 155.0211, Tax Code, in that manner or is not enacted or does
	not become law, this section has no effect.
	(c)  If this section takes effect, this section expires
	December 31, 2011.
	(d)  This section applies only to a report originally due on
	or after the effective date of this section.
	SECTION 2.  (a)  Section 171.002(d), Tax Code, is amended to
	read as follows:
	(d)  A taxable entity is not required to pay any tax and is
	not considered to owe any tax for a period if:
	(1)  the amount of tax computed for the taxable entity
	is less than $1,000; or
	(2)  the amount of the taxable entity's total revenue
	from its entire business is less than or equal to $600,000
	[$300,000] or the amount determined under Section 171.006 per
	12-month period on which margin is based.
	(b)  This section takes effect January 1, 2012, if H.B. No.
	2154, Acts of the 81st Legislature, Regular Session, 2009, amends
	Section 155.0211, Tax Code, in a manner that results in an increase
	in the revenue from the tax under that section during the state
	fiscal biennium beginning September 1, 2009, that is attributable
	to that change, and that Act is enacted and becomes law. If H.B. No.
	2154, Acts of the 81st Legislature, Regular Session, 2009, does not
	amend Section 155.0211, Tax Code, in that manner or is not enacted
	or does not become law, this section takes effect January 1, 2010.
	(c)  This section applies only to a report originally due on
	or after the effective date of this section.
	SECTION 3.  (a)  Section 171.0021(a), Tax Code, is amended to
	read as follows:
	(a)  A taxable entity is entitled to a discount of the tax
	imposed under this chapter that the taxable entity is required to
	pay after determining its taxable margin under Section 171.101,
	applying the appropriate rate of the tax under Section 171.002(a)
	or (b), and subtracting any other allowable credits, as follows:
	(1)  [for a taxable entity for which the total revenue
	from its entire business is greater than $300,000 but less than
	$400,000, the taxable entity is entitled to a discount of 80
	percent;
	[(2)     for a taxable entity for which the total revenue
	from its entire business is equal to or greater than $400,000 but
	less than $500,000, the taxable entity is entitled to a discount of
	60 percent;
	[(3)]  for a taxable entity for which the total revenue
	from its entire business is [equal to or] greater than $600,000
	[$500,000] but less than $700,000, the taxable entity is entitled
	to a discount of 40 percent; and
	(2) [(4)]  for a taxable entity for which the total
	revenue from its entire business is equal to or greater than
	$700,000 but less than $900,000, the taxable entity is entitled to a
	discount of 20 percent.
	(b)  This section takes effect January 1, 2012, if H.B. No.
	2154, Acts of the 81st Legislature, Regular Session, 2009, amends
	Section 155.0211, Tax Code, in a manner that results in an increase
	in the revenue from the tax under that section during the state
	fiscal biennium beginning September 1, 2009, that is attributable
	to that change, and that Act is enacted and becomes law. If H.B. No.
	2154, Acts of the 81st Legislature, Regular Session, 2009, does not
	amend Section 155.0211, Tax Code, in that manner or is not enacted
	or does not become law, this section takes effect January 1, 2010.
	(c)  This section applies only to a report originally due on
	or after the effective date of this section.
	SECTION 4.  Except as otherwise provided by this Act, this
	Act takes effect January 1, 2010.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 4765 was passed by the House on May 5,
	2009, by the following vote:  Yeas 143, Nays 0, 1 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 4765 on May 29, 2009, by the following vote:  Yeas 144, Nays 1,
	1 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 4765 was passed by the Senate, with
	amendments, on May 27, 2009, by the following vote:  Yeas 30, Nays
	1.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor