Texas House Bill HB4199

Texas 2021 - 87th Regular

Caption

Relating to a sales and use tax refund pilot program for certain persons who employ apprentices.

Impact

The impact of HB 4199 on state law encompasses modifications to Chapter 151 of the Tax Code, creating a structured pilot program aimed at enhancing workforce development through apprenticeships. The executive director of the Texas Workforce Commission is tasked with certifying eligible employers and overseeing a maximum certification of 100 employers at any given time. This limitation ensures that the initiative is manageable and directed towards those in need, ideally supporting economic participation in broader community contexts, especially outside metropolitan statistical areas.

Summary

House Bill 4199 establishes a sales and use tax refund pilot program for employers of qualified apprentices in Texas. The bill intends to encourage the hiring of apprentices by providing a financial incentive in the form of tax refunds. Eligible persons must employ at least one apprentice in a certified apprenticeship program for a minimum of seven months to qualify for the refund, which is set at $2,500 per apprentice. The bill specifically targets certain demographics to promote inclusivity in apprenticeship programs, allowing a maximum of six apprentices for firms hiring military veterans, military spouses, foster children, or women.

Contention

Noteworthy points of contention surrounding HB 4199 include concerns about its effectiveness and the potential favoritism in the selection process for certifications. Critics may argue that limiting the number of certified employers could keep the benefits within a small group and question the adequacy of the refund amount relative to the costs associated with employing apprentices. Additionally, there could be discussions about how effectively this program addresses the actual needs in various sectors, particularly those focusing on emerging occupational fields, and whether the current terms adequately cover a diverse range of participants in the workforce.