84R4837 GRM-D
By: Clardy H.B. No. 722
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for entities offering
internships to certain high school students.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter N to read as follows:
SUBCHAPTER N. TAX CREDIT FOR INTERNSHIPS FOR CERTAIN STUDENTS
Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions and
limitations provided by this subchapter against the tax imposed
under this chapter.
Sec. 171.702. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter if:
(1) the taxable entity offers an internship of at
least six weeks in duration to a student who is enrolled in a career
and technology education course at a high school campus that is
assigned a performance rating of at least recognized under Section
39.054, Education Code; and
(2) the student completes the internship offered by
the taxable entity during the period on which a tax report is based.
Sec. 171.703. AMOUNT; LIMITATIONS. (a) The amount of the
credit is $1,000, regardless of whether more than one internship is
offered by a taxable entity and completed during the period on which
a tax report is based.
(b) The total credit claimed for a report, including the
amount of any carryforward under Section 171.704, may not exceed
the amount of franchise tax due for the report after all other
applicable tax credits.
(c) A taxable entity may not convey, assign, or transfer a
credit under this subchapter to another entity unless all of the
assets of the taxable entity are conveyed, assigned, or transferred
in the same transaction.
Sec. 171.704. CARRYFORWARD. (a) If a taxable entity is
eligible for a credit that exceeds the limitation under Section
171.703(b), the entity may carry the unused credit forward for not
more than three consecutive reports.
(b) Credits, including credit carryforwards, are considered
to be used in the following order:
(1) a credit carryforward under this subchapter; and
(2) a current year credit.
Sec. 171.705. APPLICATION FOR CREDIT. 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.
Sec. 171.706. RULES. The comptroller shall adopt rules
necessary to implement this subchapter.
Sec. 171.707. EXPIRATION. (a) This subchapter expires
December 31, 2019.
(b) The expiration of this subchapter does not affect the
carryforward of a credit under Section 171.704 or a credit
authorized under this subchapter established before the date this
subchapter expires. A taxable entity that has any unused credits
established under this subchapter may continue to apply those
credits on or with each consecutive report until the date the credit
would have expired under this subchapter had this subchapter not
expired, and this subchapter is continued in effect notwithstanding
its repeal for the purposes of determining the amount of the credit
the taxable entity may claim and the manner in which the taxable
entity may claim the credit.
SECTION 2. A taxable entity may claim the credit under
Subchapter N, Chapter 171, Tax Code, as added by this Act, only in
connection with an internship that is completed 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.