Texas 2019 - 86th Regular

Texas House Bill HB966 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7369 GRM-D
2	2	By: Dutton H.B. No. 966
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to providing a sales and use tax refund or franchise tax
8	8	credit for businesses that employ certain apprentices.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
11	11	by adding Section 151.4292 to read as follows:
12	12	Sec. 151.4292. TAX REFUND FOR WAGES PAID TO CERTAIN
13	13	APPRENTICES. (a) In this section, "qualified apprenticeship"
14	14	means an apprenticeship program that is:
15	15	(1) certified as an industry-recognized
16	16	apprenticeship program by an entity determined to meet United
17	17	States Department of Labor criteria; or
18	18	(2) registered with the United States Department of
19	19	Labor and qualified to receive funding provided through the Texas
20	20	Workforce Commission under Chapter 133, Education Code.
21	21	(b) Except as provided by Subsection (e), a person is
22	22	eligible for a refund in the amount and under the conditions
23	23	provided by this section of the taxes paid under this chapter during
24	24	a calendar year if the person employs at least one apprentice in a
25	25	qualified apprenticeship position for at least seven months during
26	26	the calendar year.
27	27	(c) Subject to Subsection (d), the amount of the refund for
28	28	a calendar year in connection with each apprentice described by
29	29	Subsection (b) is equal to the lesser of:
30	30	(1) 50 percent of the wages paid by the person to the
31	31	apprentice during the calendar year; or
32	32	(2) $2,500.
33	33	(d) The total amount of the refund for a calendar year is
34	34	equal to the lesser of:
35	35	(1) the amount allowed under Subsection (c) for the
36	36	calendar year for not more than five apprentices; or
37	37	(2) the amount of sales and use taxes paid by the
38	38	person during the calendar year.
39	39	(e) A person is not eligible for a refund under this section
40	40	for a calendar year if the person will, as a taxable entity as
41	41	defined by Section 171.0002 or as a member of a combined group that
42	42	is a taxable entity, claim a credit under Subchapter T, Chapter 171,
43	43	on a franchise tax report covering all or part of that calendar
44	44	year.
45	45	(f) A person is not eligible for a refund under this section
46	46	in connection with wages paid to an individual apprentice for more
47	47	than 48 months.
48	48	(g) A person must apply to the comptroller to receive a
49	49	refund under this section.
50	50	SECTION 2. Chapter 171, Tax Code, is amended by adding
51	51	Subchapter T to read as follows:
52	52	SUBCHAPTER T. TAX CREDIT FOR WAGES PAID TO CERTAIN APPRENTICES
53	53	Sec. 171.9201. DEFINITION. In this subchapter, "qualified
54	54	apprenticeship" has the meaning assigned by Section 151.4292.
55	55	Sec. 171.9202. ENTITLEMENT TO CREDIT. A taxable entity is
56	56	entitled to a credit in the amount and under the conditions provided
57	57	by this subchapter against the tax imposed under this chapter.
58	58	Sec. 171.9203. QUALIFICATION. Except as provided by
59	59	Section 171.9205, a taxable entity qualifies for a credit under
60	60	this subchapter for a report if the taxable entity employs at least
61	61	one apprentice in a qualified apprenticeship position for at least
62	62	seven months during the period on which the report is based.
63	63	Sec. 171.9204. AMOUNT; LIMITATIONS. (a) Subject to
64	64	Subsection (b), the amount of the credit for a report in connection
65	65	with each apprentice described by Section 171.9203 is equal to the
66	66	lesser of:
67	67	(1) 50 percent of the wages paid by the taxable entity
68	68	to the apprentice; or
69	69	(2) $2,500.
70	70	(b) The total amount of the credit for each report is equal
71	71	to the lesser of:
72	72	(1) the total of the credits allowed under Subsection
73	73	(a) for the reporting period for not more than five apprentices; or
74	74	(2) the amount of franchise tax due after applying all
75	75	other applicable credits.
76	76	(c) A taxable entity may not claim a credit in connection
77	77	with an individual apprentice for wages paid to the apprentice for
78	78	more than 48 months.
79	79	Sec. 171.9205. INELIGIBILITY FOR CREDIT FOR CERTAIN
80	80	PERIODS. A taxable entity is not eligible for a credit on a report
81	81	if the taxable entity, or a member of the combined group if the
82	82	taxable entity is a combined group, received, for taxes paid under
83	83	Chapter 151 during the period on which the report is based, a refund
84	84	under Section 151.4292.
85	85	Sec. 171.9206. APPLICATION FOR CREDIT. (a) A taxable
86	86	entity must apply for a credit under this subchapter on or with the
87	87	tax report for the period for which the credit is claimed.
88	88	(b) The comptroller shall promulgate a form for the
89	89	application for the credit. A taxable entity must use the form in
90	90	applying for the credit.
91	91	Sec. 171.9207. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
92	92	taxable entity may claim a credit under this subchapter for a report
93	93	only in connection with wages paid during the accounting period on
94	94	which the report is based.
95	95	SECTION 3. (a) A person may apply for a refund under
96	96	Section 151.4292, Tax Code, as added by this Act, only in connection
97	97	with wages paid on or after the effective date of this Act.
98	98	(b) A taxable entity may claim the credit under Subchapter
99	99	T, Chapter 171, Tax Code, as added by this Act, only for wages paid
100	100	on or after the effective date of this Act and only on a franchise
101	101	tax report originally due under Chapter 171, Tax Code, on or after
102	102	that date.
103	103	SECTION 4. This Act takes effect January 1, 2020.