Gov. Perry: Qualifying Employers Get Tax Credit and Additional Savings Thanks to Strong Economy
Governor Rick Perry today announced that 370,000 Texas employers will receive an estimated $170 million in surplus tax credits next year. Thanks to Texas' strong economy, the Unemployment Compensation Trust Fund has reached an estimated $376.7 million surplus.
"Thanks to a robust economy Texas has exceeded our trust fund ceiling for the second year in a row, and get to return the excess taxes back to employers," said Perry. "With steady job growth and declining unemployment, I am confident these credits and savings will amount to a further boost for our economic fortitude and workforce expansion."
The tax surplus allows the Texas Workforce Commission to retire all outstanding bond debt a year ahead of schedule, providing an estimated $270 million in future tax savings to Texas employers in 2008 alone. The innovative bond sale in 2003 allowed Texas employers to avoid a deficit tax in 2004 and kept an estimated $1billion circulating in the Texas economy for job creation and expansion.
"Texas will continue to work to create more economic prosperity for all our citizens, helping our businesses generate more jobs and hire more Texans," said Perry.
Eligible Texas employers filing quarterly unemployment tax reports will receive a tax credit beginning with their first quarter 2008 tax return. To receive the credit, employers must meet certain eligibility requirements, including having payroll during 2007 and having paid all taxes due.