Texas Franchise Tax Credit for Capital Investments Disallowed

A taxable entity could not claim the credit for capital investments under the pre-2008 Texas franchise tax due to its failure to meet the three statutory requirements. The entity was unable to provide clear and convincing evidence that it: paid an average weekly wage at the location for which the credit was claimed that was at least 110% of the county average weekly wage; offered coverage to all full-time employees by a group health benefit plan, for which the business paid at least 80% of the premiums or other charges assessed under the plan for the employees at the location for which the credit was claimed; and, made the required minimum qualified capital investment. ( Texas Comptroller.s Decision 103,734, 03/05/2012 .)