Relating to a franchise tax credit for entities that employ certain students in certain paid internship or similar programs.
If enacted, SB1468 will amend Chapter 171 of the Texas Tax Code to create a subchapter focused on tax credits related to internships. This change is anticipated to impact state tax revenues to some extent, as the state will effectively provide financial incentives for companies to hire interns. However, the bill is positioned to potentially enhance the workforce quality by supporting students in gaining relevant work experience, aligning with the educational requirements set by the Texas Workforce Commission and other educational bodies.
SB1468 proposes a franchise tax credit for entities that employ certain students in paid internship or similar programs. This bill aims to incentivize businesses to hire students who are enrolled in public high schools or public junior colleges, thus promoting practical work experience and enhancing educational outcomes. Specifically, businesses can claim a credit of $1,000 for each eligible student who completes an internship as defined by the bill.
Noteworthy points of contention surrounding SB1468 may revolve around the efficacy of tax credits in fostering genuine job creation and the potential for tax revenue losses due to the credits claimed by companies. Opponents might argue that such credits could favor larger corporations that can afford to create internship programs, leaving small businesses at a disadvantage. Additionally, questions about the quality and nature of the internships provided under this scheme could arise, particularly if they do not lead to substantial educational or employment benefits for the students involved.