| 1 | 1 | | 84R4837 GRM-D |
|---|
| 2 | 2 | | By: Clardy H.B. No. 722 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to a franchise tax credit for entities offering |
|---|
| 8 | 8 | | internships to certain high school students. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
|---|
| 11 | 11 | | Subchapter N to read as follows: |
|---|
| 12 | 12 | | SUBCHAPTER N. TAX CREDIT FOR INTERNSHIPS FOR CERTAIN STUDENTS |
|---|
| 13 | 13 | | Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is |
|---|
| 14 | 14 | | entitled to a credit in the amount and under the conditions and |
|---|
| 15 | 15 | | limitations provided by this subchapter against the tax imposed |
|---|
| 16 | 16 | | under this chapter. |
|---|
| 17 | 17 | | Sec. 171.702. QUALIFICATION. A taxable entity qualifies |
|---|
| 18 | 18 | | for a credit under this subchapter if: |
|---|
| 19 | 19 | | (1) the taxable entity offers an internship of at |
|---|
| 20 | 20 | | least six weeks in duration to a student who is enrolled in a career |
|---|
| 21 | 21 | | and technology education course at a high school campus that is |
|---|
| 22 | 22 | | assigned a performance rating of at least recognized under Section |
|---|
| 23 | 23 | | 39.054, Education Code; and |
|---|
| 24 | 24 | | (2) the student completes the internship offered by |
|---|
| 25 | 25 | | the taxable entity during the period on which a tax report is based. |
|---|
| 26 | 26 | | Sec. 171.703. AMOUNT; LIMITATIONS. (a) The amount of the |
|---|
| 27 | 27 | | credit is $1,000, regardless of whether more than one internship is |
|---|
| 28 | 28 | | offered by a taxable entity and completed during the period on which |
|---|
| 29 | 29 | | a tax report is based. |
|---|
| 30 | 30 | | (b) The total credit claimed for a report, including the |
|---|
| 31 | 31 | | amount of any carryforward under Section 171.704, may not exceed |
|---|
| 32 | 32 | | the amount of franchise tax due for the report after all other |
|---|
| 33 | 33 | | applicable tax credits. |
|---|
| 34 | 34 | | (c) A taxable entity may not convey, assign, or transfer a |
|---|
| 35 | 35 | | credit under this subchapter to another entity unless all of the |
|---|
| 36 | 36 | | assets of the taxable entity are conveyed, assigned, or transferred |
|---|
| 37 | 37 | | in the same transaction. |
|---|
| 38 | 38 | | Sec. 171.704. CARRYFORWARD. (a) If a taxable entity is |
|---|
| 39 | 39 | | eligible for a credit that exceeds the limitation under Section |
|---|
| 40 | 40 | | 171.703(b), the entity may carry the unused credit forward for not |
|---|
| 41 | 41 | | more than three consecutive reports. |
|---|
| 42 | 42 | | (b) Credits, including credit carryforwards, are considered |
|---|
| 43 | 43 | | to be used in the following order: |
|---|
| 44 | 44 | | (1) a credit carryforward under this subchapter; and |
|---|
| 45 | 45 | | (2) a current year credit. |
|---|
| 46 | 46 | | Sec. 171.705. APPLICATION FOR CREDIT. A taxable entity |
|---|
| 47 | 47 | | must apply for a credit under this subchapter on or with the tax |
|---|
| 48 | 48 | | report for the period for which the credit is claimed. |
|---|
| 49 | 49 | | Sec. 171.706. RULES. The comptroller shall adopt rules |
|---|
| 50 | 50 | | necessary to implement this subchapter. |
|---|
| 51 | 51 | | Sec. 171.707. EXPIRATION. (a) This subchapter expires |
|---|
| 52 | 52 | | December 31, 2019. |
|---|
| 53 | 53 | | (b) The expiration of this subchapter does not affect the |
|---|
| 54 | 54 | | carryforward of a credit under Section 171.704 or a credit |
|---|
| 55 | 55 | | authorized under this subchapter established before the date this |
|---|
| 56 | 56 | | subchapter expires. A taxable entity that has any unused credits |
|---|
| 57 | 57 | | established under this subchapter may continue to apply those |
|---|
| 58 | 58 | | credits on or with each consecutive report until the date the credit |
|---|
| 59 | 59 | | would have expired under this subchapter had this subchapter not |
|---|
| 60 | 60 | | expired, and this subchapter is continued in effect notwithstanding |
|---|
| 61 | 61 | | its repeal for the purposes of determining the amount of the credit |
|---|
| 62 | 62 | | the taxable entity may claim and the manner in which the taxable |
|---|
| 63 | 63 | | entity may claim the credit. |
|---|
| 64 | 64 | | SECTION 2. A taxable entity may claim the credit under |
|---|
| 65 | 65 | | Subchapter N, Chapter 171, Tax Code, as added by this Act, only in |
|---|
| 66 | 66 | | connection with an internship that is completed on or after the |
|---|
| 67 | 67 | | effective date of this Act and only on a franchise tax report due |
|---|
| 68 | 68 | | under Chapter 171, Tax Code, on or after January 1, 2016. |
|---|
| 69 | 69 | | SECTION 3. This Act takes effect January 1, 2016. |
|---|