| 1 | 1 | | 86R3737 GRM-D |
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| 2 | 2 | | By: Creighton S.B. No. 570 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a franchise tax credit for entities that employ certain |
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| 8 | 8 | | students in certain paid internship or similar programs. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter R to read as follows: |
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| 12 | 12 | | SUBCHAPTER R. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN |
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| 13 | 13 | | STUDENTS |
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| 14 | 14 | | Sec. 171.8001. DEFINITIONS. In this subchapter: |
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| 15 | 15 | | (1) "Commission" means the Texas Workforce |
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| 16 | 16 | | Commission. |
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| 17 | 17 | | (2) "Eligible internship program" means a paid |
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| 18 | 18 | | internship or similar program that: |
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| 19 | 19 | | (A) meets the requirements of rules adopted by |
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| 20 | 20 | | the commission under Section 171.8005; and |
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| 21 | 21 | | (B) is part of the: |
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| 22 | 22 | | (i) curriculum requirements for an |
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| 23 | 23 | | endorsement under Section 28.025(c-1), Education Code; or |
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| 24 | 24 | | (ii) curriculum for a public junior |
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| 25 | 25 | | college. |
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| 26 | 26 | | (3) "Eligible student" means a student who has reached |
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| 27 | 27 | | the minimum age required under Chapter 51, Labor Code, to legally |
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| 28 | 28 | | work in the eligible internship program and who is enrolled: |
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| 29 | 29 | | (A) in a public high school; or |
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| 30 | 30 | | (B) full-time or part-time in a public junior |
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| 31 | 31 | | college. |
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| 32 | 32 | | (4) "Public junior college" has the meaning assigned |
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| 33 | 33 | | by Section 61.003, Education Code. |
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| 34 | 34 | | Sec. 171.8002. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 35 | 35 | | entitled to a credit in the amount and under the conditions provided |
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| 36 | 36 | | by this subchapter against the tax imposed under this chapter. |
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| 37 | 37 | | Sec. 171.8003. QUALIFICATION FOR CREDIT. A taxable entity |
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| 38 | 38 | | qualifies for a credit under this subchapter for each eligible |
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| 39 | 39 | | student who completes an eligible internship program offered by the |
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| 40 | 40 | | taxable entity. |
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| 41 | 41 | | Sec. 171.8004. AMOUNT OF CREDIT; LIMITATIONS. (a) The |
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| 42 | 42 | | amount of the credit is $1,000 for each eligible student who |
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| 43 | 43 | | completes an eligible internship program offered by the taxable |
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| 44 | 44 | | entity. |
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| 45 | 45 | | (b) A taxable entity may claim the credit only for an |
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| 46 | 46 | | eligible internship program offered by the taxable entity that is |
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| 47 | 47 | | located or based in this state. |
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| 48 | 48 | | (c) A taxable entity may not claim the credit in connection |
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| 49 | 49 | | with an eligible student if an owner of the taxable entity is |
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| 50 | 50 | | related to the eligible student within the third degree of |
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| 51 | 51 | | consanguinity as determined under Subchapter B, Chapter 573, |
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| 52 | 52 | | Government Code. |
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| 53 | 53 | | Sec. 171.8005. COMMISSION RULES. The commission, after |
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| 54 | 54 | | consulting with the commissioner of education and the Texas Higher |
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| 55 | 55 | | Education Coordinating Board, shall adopt rules providing the |
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| 56 | 56 | | requirements that an internship or similar program must meet to be |
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| 57 | 57 | | considered an eligible internship program under this subchapter. |
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| 58 | 58 | | Sec. 171.8006. APPLICATION FOR CREDIT. (a) A taxable |
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| 59 | 59 | | entity must apply for a credit under this subchapter on or with the |
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| 60 | 60 | | tax report for the period for which the credit is claimed. |
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| 61 | 61 | | (b) The comptroller shall promulgate a form for the |
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| 62 | 62 | | application for the credit. A taxable entity must use the form in |
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| 63 | 63 | | applying for the credit. |
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| 64 | 64 | | Sec. 171.8007. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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| 65 | 65 | | taxable entity may claim a credit under this subchapter against the |
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| 66 | 66 | | tax owed for a privilege period only in connection with an eligible |
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| 67 | 67 | | student who completes an eligible internship program during the |
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| 68 | 68 | | privilege period. |
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| 69 | 69 | | SECTION 2. A taxable entity may claim the credit under |
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| 70 | 70 | | Subchapter R, Chapter 171, Tax Code, as added by this Act, only in |
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| 71 | 71 | | connection with an eligible student who completes an eligible |
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| 72 | 72 | | internship program on or after the effective date of this Act and |
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| 73 | 73 | | only on a franchise tax report due under Chapter 171, Tax Code, on |
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| 74 | 74 | | or after January 1, 2020. |
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| 75 | 75 | | SECTION 3. This Act takes effect January 1, 2020. |
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