88R9814 RDS-D
By: Lopez of Bexar H.B. No. 5263
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for certain taxable entities
that provide certain employees with job-related skills training.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. TAX CREDIT FOR EMPLOYMENT AND TRAINING OF CERTAIN
EMPLOYEES
Sec. 171.551. DEFINITIONS. In this subchapter:
(1) "Eligible worker training program" means a
training program that improves a qualified employee's job-related
skills in a manner that is necessary to adapt to new demands in the
workplace due to the adoption of new technology, equipment, or
innovation, including:
(A) a program that assists a qualified employee
in successfully obtaining one or more industry-recognized
certificates or credentials;
(B) a post-secondary vocational or job training
program that assists a qualified employee in successfully obtaining
a license or an associate degree from an accredited institution of
higher education; or
(C) a training program developed under the
federal Workforce Innovation and Opportunity Act (29 U.S.C. Section
3101 et seq.).
(2) "Qualified employee" means an employee who, during
the period for which the credit is claimed, works for a qualified
employer not less than 35 hours per week for six consecutive months
and:
(A) is enrolled in the Jobs Corps program
administered by the United States Department of Labor;
(B) holds an active employment authorization
document issued through the federal Deferred Action for Childhood
Arrivals program; or
(C) holds an active H2-A or H2-B visa authorizing
the employee to work in the United States.
(3) "Qualified employer" means a taxable entity that
is engaged in an industry that is experiencing a shortage of workers
due to a lack of technical skills and technological disruption that
requires significant capital investment for the entity to remain
competitive within the industry, including:
(A) agriculture;
(B) manufacturing;
(C) food service;
(D) transit;
(E) advanced technologies and manufacturing;
(F) aerospace and defense;
(G) biotechnology and life science;
(H) information and computer technology;
(I) logistics and transportation;
(J) petroleum refining or chemical production;
and
(K) energy production.
Sec. 171.552. ENTITLEMENT TO CREDIT. A qualified employer
is entitled to a credit in the amount and under the conditions
provided by this subchapter against the tax imposed under this
chapter.
Sec. 171.553. QUALIFICATION FOR CREDIT. A qualified
employer qualifies for a credit under this subchapter if, during
the period for which the report on which the credit is claimed is
based, the qualified employer implements an eligible worker
training program.
Sec. 171.554. AMOUNT OF CREDIT; LIMITATION. (a) Subject to
Subsection (b), the amount of the credit a qualified employer may
claim on a report is an amount equal to the sum of $500 multiplied by
the number of qualified employees employed by the qualified
employer and that completed an eligible worker training program
offered by the employer during the period covered by the report.
(b) The total credit claimed on a report may not exceed the
amount of franchise tax due for the report after the application of
any other applicable credits.
Sec. 171.555. APPLICATION FOR CREDIT. (a) A qualified
employer must apply for a credit under this subchapter on or with
the report for the period for which the credit is claimed.
(b) The comptroller shall promulgate a form for the
application for the credit. A qualified employer must use the form
in applying for the credit.
(c) The comptroller may require a qualified employer to
submit with an application any other information the comptroller
determines is necessary to determine whether the employer qualifies
for the credit under Section 171.553.
Sec. 171.556. RULES. The comptroller shall adopt rules
necessary to implement and administer this subchapter.
SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by
this Act, applies only to a report originally due on or after
January 1, 2024.
SECTION 3. This Act takes effect January 1, 2024.