| 1 | 1 | | 84R5931 ADM-D |
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| 2 | 2 | | By: West S.B. No. 1248 |
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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 that employ certain |
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| 8 | 8 | | students in certain paid internship or similar programs. |
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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 O to read as follows: |
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| 12 | 12 | | SUBCHAPTER O. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN HIGH |
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| 13 | 13 | | SCHOOL STUDENTS |
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| 14 | 14 | | Sec. 171.801. DEFINITIONS. In this subchapter: |
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| 15 | 15 | | (1) "Commission" means the Texas Workforce |
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| 16 | 16 | | Commission. |
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| 17 | 17 | | (2) "Eligible internship program" means a paid |
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| 18 | 18 | | internship or similar program that: |
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| 19 | 19 | | (A) meets the requirements of rules adopted by |
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| 20 | 20 | | the commission under Section 171.806; and |
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| 21 | 21 | | (B) is part of: |
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| 22 | 22 | | (i) the curriculum requirements for an |
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| 23 | 23 | | endorsement under Section 28.025(c-1), Education Code; or |
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| 24 | 24 | | (ii) a course of study in a nontraditional |
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| 25 | 25 | | secondary education that is substantially similar, under rules |
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| 26 | 26 | | adopted by the commissioner of education under Section 171.805, to |
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| 27 | 27 | | the curriculum requirements described by Subparagraph (i). |
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| 28 | 28 | | (3) "Eligible student" means a high school student who |
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| 29 | 29 | | has reached the minimum age required under Chapter 51, Labor Code, |
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| 30 | 30 | | to legally work in the eligible internship program. |
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| 31 | 31 | | (4) "Nontraditional secondary education" means a |
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| 32 | 32 | | course of study at the secondary school level in a nonaccredited |
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| 33 | 33 | | private school setting, including a home school. |
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| 34 | 34 | | Sec. 171.802. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 35 | 35 | | entitled to a credit in the amount and under the conditions provided |
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| 36 | 36 | | by this subchapter against the tax imposed under this chapter. |
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| 37 | 37 | | Sec. 171.803. QUALIFICATION. A taxable entity qualifies |
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| 38 | 38 | | for a credit under this subchapter for each eligible student who |
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| 39 | 39 | | completes an eligible internship program offered by the taxable |
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| 40 | 40 | | entity. |
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| 41 | 41 | | Sec. 171.804. AMOUNT; LIMITATIONS. (a) The amount of the |
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| 42 | 42 | | credit is $1,000 for each eligible student who completes an |
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| 43 | 43 | | eligible internship program offered by the taxable entity. |
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| 44 | 44 | | (b) A taxable entity may claim the credit only for an |
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| 45 | 45 | | eligible internship program offered by the taxable entity that is |
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| 46 | 46 | | located or based in this state. |
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| 47 | 47 | | Sec. 171.805. COMMISSIONER OF EDUCATION RULES. The |
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| 48 | 48 | | commissioner of education shall adopt rules to determine, for a |
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| 49 | 49 | | student receiving a nontraditional secondary education, if the |
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| 50 | 50 | | student's course of study is substantially similar to the |
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| 51 | 51 | | curriculum requirements for an endorsement described by Section |
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| 52 | 52 | | 28.025(c-1), Education Code. |
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| 53 | 53 | | Sec. 171.806. COMMISSION RULES. The commission shall adopt |
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| 54 | 54 | | rules providing the requirements that an internship or similar |
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| 55 | 55 | | program must meet to be considered an eligible internship program |
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| 56 | 56 | | under this subchapter. |
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| 57 | 57 | | Sec. 171.807. APPLICATION FOR CREDIT. (a) A taxable entity |
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| 58 | 58 | | must apply for a credit under this subchapter on or with the tax |
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| 59 | 59 | | report for the period for which the credit is claimed. |
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| 60 | 60 | | (b) The comptroller shall promulgate a form for the |
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| 61 | 61 | | application for the credit. A taxable entity must use the form in |
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| 62 | 62 | | applying for the credit. |
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| 63 | 63 | | Sec. 171.808. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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| 64 | 64 | | taxable entity may claim a credit under this subchapter against the |
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| 65 | 65 | | tax owed for a privilege period only in connection with an eligible |
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| 66 | 66 | | student who completes an eligible internship program during the |
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| 67 | 67 | | privilege period. |
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| 68 | 68 | | SECTION 2. A taxable entity may claim the credit under |
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| 69 | 69 | | Subchapter O, Chapter 171, Tax Code, as added by this Act, only in |
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| 70 | 70 | | connection with an eligible student who completes an eligible |
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| 71 | 71 | | internship program on or after the effective date of this Act and |
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| 72 | 72 | | only on a franchise tax report due under Chapter 171, Tax Code, on |
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| 73 | 73 | | or after January 1, 2016. |
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| 74 | 74 | | SECTION 3. This Act takes effect January 1, 2016. |
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