86R7369 GRM-D
By: Dutton H.B. No. 966
A BILL TO BE ENTITLED
AN ACT
relating to providing a sales and use tax refund or franchise tax
credit for businesses that employ certain apprentices.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
by adding Section 151.4292 to read as follows:
Sec. 151.4292. TAX REFUND FOR WAGES PAID TO CERTAIN
APPRENTICES. (a) In this section, "qualified apprenticeship"
means an apprenticeship program that is:
(1) certified as an industry-recognized
apprenticeship program by an entity determined to meet United
States Department of Labor criteria; or
(2) registered with the United States Department of
Labor and qualified to receive funding provided through the Texas
Workforce Commission under Chapter 133, Education Code.
(b) Except as provided by Subsection (e), a person is
eligible for a refund in the amount and under the conditions
provided by this section of the taxes paid under this chapter during
a calendar year if the person employs at least one apprentice in a
qualified apprenticeship position for at least seven months during
the calendar year.
(c) Subject to Subsection (d), the amount of the refund for
a calendar year in connection with each apprentice described by
Subsection (b) is equal to the lesser of:
(1) 50 percent of the wages paid by the person to the
apprentice during the calendar year; or
(2) $2,500.
(d) The total amount of the refund for a calendar year is
equal to the lesser of:
(1) the amount allowed under Subsection (c) for the
calendar year for not more than five apprentices; or
(2) the amount of sales and use taxes paid by the
person during the calendar year.
(e) A person is not eligible for a refund under this section
for a calendar year if the person will, as a taxable entity as
defined by Section 171.0002 or as a member of a combined group that
is a taxable entity, claim a credit under Subchapter T, Chapter 171,
on a franchise tax report covering all or part of that calendar
year.
(f) A person is not eligible for a refund under this section
in connection with wages paid to an individual apprentice for more
than 48 months.
(g) A person must apply to the comptroller to receive a
refund under this section.
SECTION 2. Chapter 171, Tax Code, is amended by adding
Subchapter T to read as follows:
SUBCHAPTER T. TAX CREDIT FOR WAGES PAID TO CERTAIN APPRENTICES
Sec. 171.9201. DEFINITION. In this subchapter, "qualified
apprenticeship" has the meaning assigned by Section 151.4292.
Sec. 171.9202. 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. 171.9203. QUALIFICATION. Except as provided by
Section 171.9205, a taxable entity qualifies for a credit under
this subchapter for a report if the taxable entity employs at least
one apprentice in a qualified apprenticeship position for at least
seven months during the period on which the report is based.
Sec. 171.9204. AMOUNT; LIMITATIONS. (a) Subject to
Subsection (b), the amount of the credit for a report in connection
with each apprentice described by Section 171.9203 is equal to the
lesser of:
(1) 50 percent of the wages paid by the taxable entity
to the apprentice; or
(2) $2,500.
(b) The total amount of the credit for each report is equal
to the lesser of:
(1) the total of the credits allowed under Subsection
(a) for the reporting period for not more than five apprentices; or
(2) the amount of franchise tax due after applying all
other applicable credits.
(c) A taxable entity may not claim a credit in connection
with an individual apprentice for wages paid to the apprentice for
more than 48 months.
Sec. 171.9205. INELIGIBILITY FOR CREDIT FOR CERTAIN
PERIODS. A taxable entity is not eligible for a credit on a report
if the taxable entity, or a member of the combined group if the
taxable entity is a combined group, received, for taxes paid under
Chapter 151 during the period on which the report is based, a refund
under Section 151.4292.
Sec. 171.9206. 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. 171.9207. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
taxable entity may claim a credit under this subchapter for a report
only in connection with wages paid during the accounting period on
which the report is based.
SECTION 3. (a) A person may apply for a refund under
Section 151.4292, Tax Code, as added by this Act, only in connection
with wages paid on or after the effective date of this Act.
(b) A taxable entity may claim the credit under Subchapter
T, Chapter 171, Tax Code, as added by this Act, only for wages paid
on or after the effective date of this Act and only on a franchise
tax report originally due under Chapter 171, Tax Code, on or after
that date.
SECTION 4. This Act takes effect January 1, 2020.