84R5931 ADM-D
By: Workman H.B. No. 1047
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for entities that employ certain
students in certain paid internship or similar programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter O to read as follows:
SUBCHAPTER O. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN HIGH
SCHOOL STUDENTS
Sec. 171.801. DEFINITIONS. In this subchapter:
(1) "Commission" means the Texas Workforce
Commission.
(2) "Eligible internship program" means a paid
internship or similar program that:
(A) meets the requirements of rules adopted by
the commission under Section 171.806; and
(B) is part of:
(i) the curriculum requirements for an
endorsement under Section 28.025(c-1), Education Code; or
(ii) a course of study in a nontraditional
secondary education that is substantially similar, under rules
adopted by the commissioner of education under Section 171.805, to
the curriculum requirements described by Subparagraph (i).
(3) "Eligible student" means a high school student who
has reached the minimum age required under Chapter 51, Labor Code,
to legally work in the eligible internship program.
(4) "Nontraditional secondary education" means a
course of study at the secondary school level in a nonaccredited
private school setting, including a home school.
Sec. 171.802. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions provided
by this subchapter against the tax imposed under this chapter.
Sec. 171.803. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter for each eligible student who
completes an eligible internship program offered by the taxable
entity.
Sec. 171.804. AMOUNT; LIMITATIONS. (a) The amount of the
credit is $1,000 for each eligible student who completes an
eligible internship program offered by the taxable entity.
(b) A taxable entity may claim the credit only for an
eligible internship program offered by the taxable entity that is
located or based in this state.
Sec. 171.805. COMMISSIONER OF EDUCATION RULES. The
commissioner of education shall adopt rules to determine, for a
student receiving a nontraditional secondary education, if the
student's course of study is substantially similar to the
curriculum requirements for an endorsement described by Section
28.025(c-1), Education Code.
Sec. 171.806. COMMISSION RULES. The commission shall adopt
rules providing the requirements that an internship or similar
program must meet to be considered an eligible internship program
under this subchapter.
Sec. 171.807. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the tax
report for the period for which the credit is claimed.
(b) The comptroller shall promulgate a form for the
application for the credit. A taxable entity must use the form in
applying for the credit.
Sec. 171.808. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
taxable entity may claim a credit under this subchapter against the
tax owed for a privilege period only in connection with an eligible
student who completes an eligible internship program during the
privilege period.
SECTION 2. A taxable entity may claim the credit under
Subchapter O, Chapter 171, Tax Code, as added by this Act, only in
connection with an eligible student who completes an eligible
internship program on or after the effective date of this Act and
only on a franchise tax report due under Chapter 171, Tax Code, on
or after January 1, 2016.
SECTION 3. This Act takes effect January 1, 2016.