85R1645 ADM-D
By: Miles S.B. No. 518
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for entities that employ certain
students in certain paid internship or similar programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter R to read as follows:
SUBCHAPTER R. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN HIGH
SCHOOL STUDENTS
Sec. 171.871. DEFINITIONS. In this subchapter:
(1) "Commission" means the Texas Workforce
Commission.
(2) "Eligible internship program" means a paid
internship or similar program that:
(A) meets the requirements of rules adopted by
the commission under Section 171.875; and
(B) is part of the curriculum requirements for an
endorsement under Section 28.025(c-1), Education Code.
(3) "Eligible student" means a student enrolled in a
public high school who has reached the minimum age required under
Chapter 51, Labor Code, to legally work in the eligible internship
program.
Sec. 171.872. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions provided
by this subchapter against the tax imposed under this chapter.
Sec. 171.873. QUALIFICATION FOR CREDIT. A taxable entity
qualifies for a credit under this subchapter for each eligible
student who completes an eligible internship program offered by the
taxable entity.
Sec. 171.874. AMOUNT OF CREDIT; LIMITATIONS. (a) The
amount of the credit is $1,000 for each eligible student who
completes an eligible internship program offered by the taxable
entity.
(b) A taxable entity may claim the credit only for an
eligible internship program offered by the taxable entity that is
located or based in this state.
(c) A taxable entity may not claim the credit in connection
with an eligible student if an owner of the taxable entity is
related to the eligible student within the third degree of
consanguinity as determined under Subchapter B, Chapter 573,
Government Code.
Sec. 171.875. COMMISSION RULES. The commission, after
consulting with the commissioner of education, shall adopt rules
providing the requirements that an internship or similar program
must meet to be considered an eligible internship program under
this subchapter.
Sec. 171.876. APPLICATION FOR CREDIT. (a) 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.
(b) The comptroller shall promulgate a form for the
application for the credit. A taxable entity must use the form in
applying for the credit.
Sec. 171.877. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
taxable entity may claim a credit under this subchapter against the
tax owed for a privilege period only in connection with an eligible
student who completes an eligible internship program during the
privilege period.
SECTION 2. A taxable entity may claim the credit under
Subchapter R, Chapter 171, Tax Code, as added by this Act, only in
connection with an eligible student who completes an eligible
internship program 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, 2018.
SECTION 3. This Act takes effect January 1, 2018.