AUSTIN — The Senate has approved HB 7, sponsored by State Senator Jane Nelson, R-Flower Mound, to protect businesses from a major increase in unemployment taxes amid the pandemic. The bill now moves to the Governor's desk.  

"Employers should not be punished for layoffs that occurred because of the economic downturn caused by the pandemic," Senator Nelson said.  "At a time when our businesses are working so hard to reopen and rehire, we cannot allow them to face a dramatic tax increase, and HB 7 will prevent that from happening."

Texas businesses pay an unemployment insurance tax that is deposited into the Unemployment Compensation Trust Fund. The tax is recalculated annually based on the number of layoffs that have occurred. HB 7 exempts disaster-related unemployment from the calculation, which will give the state more time to consider ways to address the Unemployment Compensation Trust Fund, which was depleted in June.

Also heading to the Governor's desk is HB 1195, co-sponsored by Senator Nelson, to exempt federal Paycheck Protection Program (PPP) loans from being counted as profits under the state's franchise tax. These loans were provided under the federal Coronavirus Aid, Relief, and Economic and Security Act.

"These loans provided a lifeline to Texas businesses, and it would be unconscionable to impose a state tax on them," Senator Nelson said.

 

SENATOR JANE NELSON represents District 12,including portions of Tarrant and Denton Counties. She is Chairman of the Senate Finance Committee and the highest-ranking Republican in the Texas Senate.

More Updates

Texas Schools to Receive Additional Resources to Address Learning Loss and Help Districts Recover

State Senator Jane Nelson, R-Flower Mound, today announced the release of $11.2 billion in new federal funds to help public schools address student learning loss and costs incurred as a result of the COVID-19 pandemic.

Read More

Nelson Files Bill to Protect Highway Patrol Officers

The Senate Finance Committee unanimously approved SB 2222 filed by State Senator Jane Nelson, R-Flower Mound, to provide bullet resistant windshields for Department of Public Safety (DPS) patrol vehicles.

Read More

Bills By Senator Nelson Advance

Today the Texas Senate approved several bills authored by Senator Jane Nelson, R-Flower Mound, including legislation that would help survivors of domestic violence, cut red tape for retired law enforcement officers and cleanup the Tax Code. These bills now go to the House for consideration:

Read More
Your browser has javascript disabled or does not support javascript, some site functionality may not work as a result