By: Hughes S.B. No. 1524
(In the Senate - Filed March 11, 2021; March 24, 2021, read
first time and referred to Committee on Finance; April 15, 2021,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 14, Nays 1; April 15, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1524 By: Schwertner
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax refund pilot program for certain
persons who employ 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 PILOT PROGRAM FOR CERTAIN PERSONS
WHO EMPLOY APPRENTICES. (a) In this section:
(1) "Executive director" means the executive director
of the Texas Workforce Commission.
(2) "Qualified apprenticeship" means an
apprenticeship program that is:
(A) certified as an industry-recognized
apprenticeship program by an entity determined to meet United
States Department of Labor criteria; or
(B) 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) 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 is certified by the
executive director under Subsection (f) and employs at least one
apprentice in a qualified apprenticeship position for at least
seven months during the calendar year. A person is not considered
to be employed in a qualified apprenticeship position for purposes
of this section:
(1) after the earlier of:
(A) the fourth anniversary of employment in the
position; or
(B) the conclusion of the term of the
apprenticeship position; or
(2) if the person was employed in another position by
the employer immediately before beginning employment in the
apprenticeship position.
(c) Subject to Subsections (d) and (e), the amount of the
refund for a calendar year in connection with each apprentice
described by Subsection (b) is $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 each apprentice described by Subsection (b), not
to exceed the maximum number of apprentices provided by Subsection
(e); or
(2) the amount of sales and use taxes paid by the
person during the calendar year.
(e) The maximum number of apprentices in connection with
whom a person may receive a refund in a calendar year is:
(1) one; or
(2) not more than six if at least half of the
apprentices employed are:
(A) foster children who have transitioned or are
transitioning to independent living, as described in Section
264.121, Family Code;
(B) military veterans, as defined by Section
55.001, Occupations Code;
(C) military spouses, as defined by Section
55.001, Occupations Code; or
(D) women.
(f) A person may not apply for a refund under this section
unless the executive director certifies that the person is able to
employ apprentices in qualified apprenticeships. A person must
apply to the executive director to obtain certification. The
executive director shall create an application form for the
certification.
(g) The executive director may certify not more than 100
persons under Subsection (f) at any time. If the number of eligible
applicants exceeds the limit provided by this subsection, the
executive director shall select applicants for certification
according to rules adopted under Subsection (h).
(h) The executive director shall adopt rules that establish
merit-based criteria for selecting persons to certify from among
those who apply. The rules must require that the executive director
give preference to applicants who:
(1) offer qualified apprenticeships in areas of this
state that are not designated as metropolitan statistical areas by
the United States Office of Management and Budget; and
(2) provide training and skills development in
emerging or developing occupational fields.
(i) The executive director shall issue a certificate to each
person certified under Subsection (f). The certificate must
confirm that the person is eligible to apply for a refund under this
section.
(j) A person must apply to the comptroller for a refund
under this section. The person must include with the application
the certificate issued to the person under Subsection (i) and any
other information the comptroller requires.
(k) Not later than September 1, 2024, the executive director
shall prepare and deliver to the governor, the lieutenant governor,
the speaker of the house of representatives, and the presiding
officer of each legislative standing committee with primary
jurisdiction over taxation a report that evaluates the effect of
the pilot program on the employment outcomes and earnings of
apprentices with respect to whom refunds are granted under the
pilot program under this section. The report must include a
recommendation regarding whether the pilot program should be
continued, expanded, or terminated.
(l) A person who applies for a refund under this section
shall provide to the executive director information the executive
director requests to prepare the report described by Subsection
(k).
(m) This section expires December 31, 2026.
SECTION 2. A person may apply for a refund under Section
151.4292, Tax Code, as added by this Act, only in connection with
apprentices first employed on or after the effective date of this
Act.
SECTION 3. The Texas Workforce Commission and the
comptroller of public accounts are required to implement this Act
only if the legislature appropriates money specifically for that
purpose. If the legislature does not appropriate money
specifically for that purpose, the commission and the comptroller
may, but are not required to, implement this Act using other
appropriations available for the purpose.
SECTION 4. This Act takes effect January 1, 2022.
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