| 1 | 1 | | 84R6518 GRM-D |
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| 2 | 2 | | By: Anderson of Dallas H.B. No. 1387 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a franchise tax credit for entities offering |
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| 8 | 8 | | internships to certain college students. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter U to read as follows: |
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| 12 | 12 | | SUBCHAPTER U. TAX CREDITS FOR INTERNSHIPS FOR CERTAIN COLLEGE |
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| 13 | 13 | | STUDENTS |
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| 14 | 14 | | Sec. 171.961. DEFINITIONS. In this subchapter, |
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| 15 | 15 | | "institution of higher education" and "private or independent |
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| 16 | 16 | | institution of higher education" have the meanings assigned by |
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| 17 | 17 | | Section 61.003, Education Code. |
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| 18 | 18 | | Sec. 171.962. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 19 | 19 | | entitled to a credit in the amount and under the conditions and |
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| 20 | 20 | | limitations provided by this subchapter against the tax imposed |
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| 21 | 21 | | under this chapter. |
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| 22 | 22 | | Sec. 171.963. QUALIFICATION. A taxable entity qualifies |
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| 23 | 23 | | for a credit under this subchapter if: |
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| 24 | 24 | | (1) the taxable entity offers an internship of at |
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| 25 | 25 | | least six weeks in duration to a student who is enrolled in an |
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| 26 | 26 | | institution of higher education or a private or independent |
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| 27 | 27 | | institution of higher education; and |
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| 28 | 28 | | (2) the student completes the internship offered by |
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| 29 | 29 | | the taxable entity during the period on which a tax report is based. |
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| 30 | 30 | | Sec. 171.964. AMOUNT; LIMITATIONS. (a) The amount of the |
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| 31 | 31 | | credit is $1,000, regardless of whether more than one internship is |
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| 32 | 32 | | offered by a taxable entity and completed during the period on which |
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| 33 | 33 | | a tax report is based. |
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| 34 | 34 | | (b) The total credit claimed for a report, including the |
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| 35 | 35 | | amount of any carryforward under Section 171.965, may not exceed |
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| 36 | 36 | | the amount of franchise tax due for the report after all other |
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| 37 | 37 | | applicable tax credits. |
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| 38 | 38 | | (c) A taxable entity may not convey, assign, or transfer a |
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| 39 | 39 | | credit under this subchapter to another entity unless all of the |
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| 40 | 40 | | assets of the taxable entity are conveyed, assigned, or transferred |
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| 41 | 41 | | in the same transaction. |
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| 42 | 42 | | Sec. 171.965. CARRYFORWARD. (a) If a taxable entity is |
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| 43 | 43 | | eligible for a credit that exceeds the limitation under Section |
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| 44 | 44 | | 171.964(b), the entity may carry the unused credit forward for not |
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| 45 | 45 | | more than three consecutive reports. |
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| 46 | 46 | | (b) Credits, including credit carryforwards, are considered |
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| 47 | 47 | | to be used in the following order: |
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| 48 | 48 | | (1) a credit carryforward under this subchapter; and |
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| 49 | 49 | | (2) a current year credit. |
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| 50 | 50 | | Sec. 171.966. APPLICATION FOR CREDIT. A taxable entity |
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| 51 | 51 | | must apply for a credit under this subchapter on or with the tax |
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| 52 | 52 | | report for the period for which the credit is claimed. |
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| 53 | 53 | | Sec. 171.967. RULES. The comptroller shall adopt rules |
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| 54 | 54 | | necessary to implement this subchapter. |
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| 55 | 55 | | Sec. 171.968. EXPIRATION. (a) This subchapter expires |
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| 56 | 56 | | December 31, 2019. |
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| 57 | 57 | | (b) The expiration of this subchapter does not affect the |
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| 58 | 58 | | carryforward of a credit under Section 171.965 or a credit |
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| 59 | 59 | | authorized under this subchapter established before the date this |
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| 60 | 60 | | subchapter expires. A taxable entity that has any unused credits |
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| 61 | 61 | | established under this subchapter may continue to apply those |
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| 62 | 62 | | credits on or with each consecutive report until the date the credit |
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| 63 | 63 | | would have expired under this subchapter had this subchapter not |
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| 64 | 64 | | expired, and this subchapter is continued in effect notwithstanding |
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| 65 | 65 | | its repeal for the purposes of determining the amount of the credit |
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| 66 | 66 | | the taxable entity may claim and the manner in which the taxable |
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| 67 | 67 | | entity may claim the credit. |
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| 68 | 68 | | SECTION 2. A taxable entity may claim the credit under |
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| 69 | 69 | | Subchapter U, Chapter 171, Tax Code, as added by this Act, only in |
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| 70 | 70 | | connection with an internship that is completed on or after the |
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| 71 | 71 | | effective date of this Act and only on a franchise tax report due |
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| 72 | 72 | | under Chapter 171, Tax Code, on or after January 1, 2016. |
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| 73 | 73 | | SECTION 3. This Act takes effect January 1, 2016. |
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