(a) Tax refund. A person who employs individuals who
receive aid to families with dependent children, referred to as "employer"
in this section, may apply for a refund of tax paid by the person
to this state if the tax is administered by the comptroller and deposited
to the credit of the general revenue fund without dedication, as described
in Labor Code, §301.102(b).
(b) Eligibility. To be eligible for this refund, an
employer must file Texas Workforce Commission (TWC) Form 1098, or
any successor form, with the TWC. The TWC will determine an employer's
eligibility based on the requirements of Labor Code, Chapter 301,
Subchapter H. For eligible employers, the TWC will certify the maximum
allowable refund to the comptroller. After receipt of the certification,
the comptroller will process the refund subject to the limitation
in subsection (c) of this section.
(c) Limitation. The refund an employer receives for
a calendar year is limited to the lesser of the amount certified by
the TWC or the amount of net tax paid to this state by the employer,
after any other applicable tax credits, in that calendar year.
(1) If the amount certified by the TWC is more than
the tax paid by the employer to this state, the comptroller may contact
the employer to obtain records regarding Texas tax paid by the employer
on purchases during the calendar year at issue. If the employer can
prove the payment of additional Texas tax during the calendar year,
the comptroller may increase the refund amount.
(2) If the amount certified by the TWC is still more
than the tax paid by the employer to this state, the comptroller will
only grant the refund up to the amount of tax paid to this state.
This may result in the refund being granted in part and denied in
part.
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