Gov. Rick Perry has announced that 370,000 Texas employers will receive tax credits next year because the Unemployment Compensation Trust Fund has amassed a surplus of approximately $376.7 million.
According to Perry, the surplus comes thanks to a robust economy. “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 work force expansion,” Perry said.
The tax surplus will allow the Texas Workforce Commission to retire ahead of schedule all outstanding bond debt. That, in turn, will provide approximately $270 million in tax savings to Texas employers in 2008.
Employers that file quarterly unemployment tax reports will receive a tax credit beginning with their first-quarter 2008 tax returns. To receive the credit, employers must meet certain requirements, including having payroll during 2007 and having paid all taxes due.
“Texas will continue to work to create more economic prosperity for all our citizens, helping our businesses generate more jobs and hire more Texans,” Perry said.