Texas 2017 - 85th Regular

Texas Senate Bill SB518 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Miles, et al. S.B. No. 518
2		-	(In the Senate - Filed January 18, 2017; February 6, 2017,
3		-	read first time and referred to Committee on Finance;
4		-	April 5, 2017, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 11, Nays 3; April 5, 2017,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 518 By: Uresti
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to a franchise tax credit for entities that employ certain
14	7		students in certain paid internship or similar programs.
15	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	9		SECTION 1. Chapter 171, Tax Code, is amended by adding
17	10		Subchapter R to read as follows:
18	11		SUBCHAPTER R. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN HIGH
19	12		SCHOOL STUDENTS
20	13		Sec. 171.871. DEFINITIONS. In this subchapter:
21	14		(1) "Commission" means the Texas Workforce
22	15		Commission.
23	16		(2) "Eligible internship program" means a paid
24		-	internship or similar program that:
25		-	(A) meets the requirements of rules adopted by
26		-	the commission under Section 171.875; and
27		-	(B) is part of the curriculum requirements for an
28		-	endorsement under Section 28.025(c-1), Education Code.
29		-	(3) "Eligible student" means a student enrolled in a
30		-	public high school who has reached the minimum age required under
31		-	Chapter 51, Labor Code, to legally work in the eligible internship
32		-	program.
	17	+	internship or similar program that meets the requirements of rules
	18	+	adopted by the commission under Section 171.875 and requires an
	19	+	eligible student to work at least the number of hours equivalent to
	20	+	five hours per week for one semester.
	21	+	(3) "Eligible student" means a home-schooled student
	22	+	or a student enrolled in a public, private, or charter school who
	23	+	has reached the minimum age required under Chapter 51, Labor Code,
	24	+	to legally work in the eligible internship program.
33	25		Sec. 171.872. ENTITLEMENT TO CREDIT. A taxable entity is
34	26		entitled to a credit in the amount and under the conditions provided
35	27		by this subchapter against the tax imposed under this chapter.
36	28		Sec. 171.873. QUALIFICATION FOR CREDIT. A taxable entity
37	29		qualifies for a credit under this subchapter for each eligible
38	30		student who completes an eligible internship program offered by the
39	31		taxable entity.
40	32		Sec. 171.874. AMOUNT OF CREDIT; LIMITATIONS. (a) The
41	33		amount of the credit is $1,000 for each eligible student who
42	34		completes an eligible internship program offered by the taxable
43	35		entity.
44	36		(b) A taxable entity may claim the credit only for an
45	37		eligible internship program offered by the taxable entity that is
46	38		located or based in this state.
47	39		(c) A taxable entity may not claim the credit in connection
48	40		with an eligible student if an owner of the taxable entity is
49	41		related to the eligible student within the third degree of
50	42		consanguinity as determined under Subchapter B, Chapter 573,
51	43		Government Code.
52	44		(d) The total amount of tax credits that may be awarded
53	45		under this subchapter may not exceed $5 million in a state fiscal
54	46		biennium.
55	47		(e) The comptroller by rule shall prescribe procedures by
56	48		which the comptroller may allocate credits under this subchapter.
57	49		The procedures must provide that credits are allocated to taxable
58	50		entities that apply under Section 171.876 on a first-come,
59	51		first-served basis.
60	52		Sec. 171.875. COMMISSION RULES. The commission, after
61	53		consulting with the commissioner of education, shall adopt rules
62	54		providing the requirements that an internship or similar program
63	55		must meet to be considered an eligible internship program under
64	56		this subchapter.
65	57		Sec. 171.876. APPLICATION FOR CREDIT. (a) A taxable
66	58		entity must apply for a credit under this subchapter on or with the
67	59		tax report for the period for which the credit is claimed.
68	60		(b) The comptroller shall promulgate a form for the
69	61		application for the credit. A taxable entity must use the form in
70	62		applying for the credit.
71	63		Sec. 171.877. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
72	64		taxable entity may claim a credit under this subchapter against the
73	65		tax owed for a privilege period only in connection with an eligible
74	66		student who completes an eligible internship program during the
75	67		privilege period.
76	68		Sec. 171.878. BIENNIAL STUDY AND REPORT. (a) In this
77	69		section, "school" refers to the school of public affairs at Texas
78	70		Southern University.
79	71		(b) The school shall biennially study and report on the
80	72		effectiveness of the tax credit established by this subchapter in
81	73		creating jobs. The report must include, to the extent available,
82		-	for ~~the~~ period covered by the report:
	74	+	for each privilege period covered by the report:
83	75		(1) the total number of eligible internship programs
84	76		offered in which eligible students participated and the total
85	77		amount of credits claimed by taxable entities for those internship
86	78		programs;
87	79		(2) the total number of eligible students who
88	80		completed an eligible internship program and who were subsequently
89	81		hired for a permanent job in this state by the taxable entity that
90	82		offered the program;
91	83		(3) for the permanent jobs described by Subdivision
92	84		(2):
93	85		(A) the median wage of those jobs;
94	86		(B) the North American Industry Classification
95	87		System classification of each of those jobs; and
96	88		(C) the number of those jobs that provide health
97	89		benefits coverage;
98	90		(4) the number of taxable entities receiving a credit
99	91		that are historically underutilized businesses, as that term is
100	92		defined by Section 2161.001, Government Code, and the total amount
101		-	of credits claimed by those entities; ~~and~~
	93	+	of credits claimed by those entities;
102	94		(5) demographic information on students participating
103	95		in eligible internship programs under this subchapter, including
104	96		the schools in which the students are enrolled, to the extent
105		-	allowed under state and federal law.
	97	+	allowed under state and federal law; and
	98	+	(6) an assessment of the number of eligible internship
	99	+	programs that would not have been offered in the absence of the
	100	+	credit and the total number of students who completed those
	101	+	programs, including:
	102	+	(A) for the 2018 privilege period, a comparison
	103	+	of the number of students for which a credit is reported under
	104	+	Subdivision (1) to the number of public high school students of
	105	+	legal working age who were employed in this state for any period of
	106	+	time during the 2017 privilege period by the taxable entities that
	107	+	offered eligible internship programs reported under Subdivision
	108	+	(1) for the 2018 privilege period; and
	109	+	(B) for the 2018 privilege period and each
	110	+	subsequent period, an estimate of the number of public high school
	111	+	students of legal working age who were employed in this state for
	112	+	any period of time during the privilege period outside of an
	113	+	eligible internship program.
106	114		(c) To the extent allowed by law, the comptroller, the Texas
107	115		Higher Education Coordinating Board, and any other appropriate
108	116		state agency shall assist the school in obtaining the information
109	117		needed to prepare the report required under Subsection (b).
110	118		(d) Not later than December 1 of each even-numbered year,
111	119		the school shall submit the report required under Subsection (b) to
112	120		the governor, the lieutenant governor, and the legislature. The
113	121		report may be submitted electronically.
	122	+	Sec. 171.879. EXPIRATION. (a) This subchapter expires
	123	+	December 31, 2023.
	124	+	(b) The expiration of this subchapter does not affect the
	125	+	carryforward of a credit authorized under this subchapter
	126	+	established before the date this subchapter expires.
114	127		SECTION 2. A taxable entity may claim the credit under
115	128		Subchapter R, Chapter 171, Tax Code, as added by this Act, only in
116	129		connection with an eligible student who completes a paid internship
117	130		or similar program on or after the effective date of this Act and
118	131		only on a franchise tax report originally due under Chapter 171, Tax
119	132		Code, on or after that date.
120	133		SECTION 3. The first report required by Section 171.878,
121	134		Tax Code, as added by this Act, is due not later than December 1,
122	135		2018.
123	136		SECTION 4. This Act takes effect January 1, 2018.
124		-	* * * * *