Texas 2025 - 89th Regular

Texas Senate Bill SB2182 Compare Versions

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1	1	By: Hall S.B. No. 2182
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to a franchise tax credit for taxable entities that employ
9	9	certain apprentices in broadband utility engineering or
10	10	construction jobs.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 171, Tax Code, is amended by adding
13	13	Subchapter N-1 to read as follows:
14	14	SUBCHAPTER N-1. TAX CREDIT FOR EMPLOYMENT OF APPRENTICES FOR
15	15	BROADBAND UTILITY CONSTRUCTION
16	16	Sec. 171.721. GENERAL DEFINITIONS. In this subchapter:
17	17	(1) "Broadband utility engineering or construction
18	18	job" means a job described in category 237130 of the 2022 North
19	19	American Industry Classification System.
20	20	(2) "Commission" means the Texas Workforce Commission.
21	21	Sec. 171.722. DEFINITION: QUALIFYING APPRENTICE. (a) For
22	22	purposes of this subchapter, "qualifying apprentice" means an
23	23	apprentice employed by a taxable entity:
24	24	(1) in a broadband utility engineering or construction job;
25	25	and
26	26	(2) and as part of an apprenticeship program that is:
27	27	(A) certified as an industry-recognized
28	28	apprenticeship program by an entity determined to meet United
29	29	States Department of Labor criteria; or
30	30	(B) registered with the United States Department
31	31	of Labor and qualified to receive funding provided through the
32	32	commission under Chapter 133, Education Code.
33	33	(b) An individual who otherwise meets the definition of
34	34	qualifying apprentice under Subsection (a) may not be considered a
35	35	qualifying apprentice of a taxable entity for purposes of this
36	36	subchapter:
37	37	(1) beyond the earlier of:
38	38	(A) the fourth anniversary of the date the
39	39	individual was employed by the entity as a qualifying apprentice;
40	40	or
41	41	(B) the conclusion of the initial term of the
42	42	apprenticeship program in which the individual is participating;
43	43	or
44	44	(2) if the individual was employed by the entity in
45	45	another capacity immediately before being employed by the entity
46	46	as a qualifying apprentice.
47	47	Sec. 171.723. ENTITLEMENT TO CREDIT. A taxable entity is
48	48	entitled to a credit in the amount and under the conditions
49	49	provided by this subchapter against the tax imposed under this
50	50	chapter.
51	51	Sec. 171.724. QUALIFICATION. A taxable entity qualifies
52	52	for a credit under this subchapter if, during the period for which
53	53	the credit is claimed, the entity employs at least one qualifying
54	54	apprentice for at least three months and, in accordance with
55	55	criteria adopted by the commission by rule, provides the apprentice
56	56	with training and skills development in pole climbing, rigging,
57	57	fiber and coax splicing, or other tasks required of an aerial
58	58	lineman.
59	59	Sec. 171.725. CERTIFICATE OF ELIGIBILITY. (a) Before
60	60	claiming a credit under this subchapter, a taxable entity must
61	61	request a certificate of eligibility from the commission stating
62	62	that the entity qualifies for a credit under this subchapter by
63	63	satisfying the requirements of Section 171.724. The entity must
64	64	request the certificate of eligibility in the manner prescribed by
65	65	the commission.
66	66	(b) On receipt of a request under Subsection (a), the
67	67	commission shall:
68	68	(1) determine whether the taxable entity is eligible
69	69	for a credit under this subchapter; and
70	70	(2) if the commission determines that the taxable
71	71	entity is eligible for a credit, issue the requested certificate of
72	72	eligibility.
73	73	Sec. 171.726. AMOUNT OF CREDIT; LIMITATION. (a) Subject to
74	74	Subsections (b) and (c), the amount of the credit a taxable entity
75	75	may claim on a report is an amount equal to $5,000 multiplied by the
76	76	number of qualifying apprentices employed by the entity during the
77	77	period covered by the report.
78	78	(b) The total credit claimed on a report may not exceed the
79	79	amount of franchise tax due for the report after the application of
80	80	any other applicable credits.
81	81	(c) The total amount of credits that may be awarded under
82	82	Subsection (a) in a state fiscal biennium may not exceed $10
83	83	million.
84	84	Sec. 171.727. CARRYFORWARD. (a) If a taxable entity is
85	85	eligible for a credit that exceeds the limitation under Section
86	86	171.726(b), the entity may carry the unused credit forward for not
87	87	more than five consecutive reports.
88	88	(b) A carryforward is considered the remaining portion of a
89	89	credit that cannot be claimed on a report because of the limitation
90	90	under Section 171.726(b).
91	91	(c) Credits, including a carryforward, are considered to be
92	92	used in the following order:
93	93	(1) a carryforward under this section; and
94	94	(2) a credit for the period on which the report is
95	95	based.
96	96	Sec. 171.728. APPLICATION FOR CREDIT. (a) A taxable entity
97	97	must apply for a credit under this subchapter on or with the report
98	98	for the period for which the credit is claimed.
99	99	(b) A taxable entity must apply for the credit in the manner
100	100	prescribed by the comptroller and include with the application:
101	101	(1) the certificate of eligibility issued under
102	102	Section 171.725; and
103	103	(2) any information requested by the comptroller to
104	104	determine the amount of the credit.
105	105	(c) The comptroller shall award a credit to a taxable entity
106	106	that submits an application that complies with the provisions of
107	107	this section if the entity is eligible for the credit and the
108	108	credit is available under Section 171.726(c).
109	109	assigned shall jointly submit written notice of the sale or
110	110	assignment to the comptroller not later than the 30th day after the
111	111	date of the sale or assignment. The notice must include:
112	112	(1) the date on which the credit was originally
113	113	established;
114	114	(2) the date of the sale or assignment;
115	115	(3 the amount of the credit sold or assigned and the
116	116	remaining period during which it may be used;
117	117	(4) the names, addresses, and federal tax
118	118	identification numbers of the taxable entity that sold or assigned
119	119	the credit or part of the credit and the taxable entity to which the
120	120	credit or
121	121	Sec. 171.729. RULES. The comptroller may adopt rules
122	122	necessary to implement and administer this subchapter.
123	123	Sec. 171.730. REPORT. (a) Not later than November 1 of
124	124	each even-numbered year, the commission shall prepare and deliver
125	125	to the governor, the lieutenant governor, the speaker of the house
126	126	of representatives, and the presiding officer of each legislative
127	127	standing committee with primary jurisdiction over taxation a
128	128	report that evaluates the effect of the tax credits issued under
129	129	this subchapter on the employment outcomes and earnings of
130	130	qualifying apprentices with respect to whom credits are issued
131	131	under this subchapter. The report must include a recommendation
132	132	regarding whether the tax credit should be expanded or terminated.
133	133	(b) A taxable entity that requests a certificate of
134	134	eligibility under Section 171.725 shall provide, on request of the
135	135	commission, information the commission determines is necessary to
136	136	prepare the report under this section.
137	137	SECTION 2. Subchapter N-1, Chapter 171, Tax Code, as added
138	138	by this Act, applies only to a report originally due on or after
139	139	January 1, 2026.
140	140	SECTION 3. An entity may apply for a franchise tax credit
141	141	under Subchapter N-1, Chapter 171, Tax Code, as added by this Act,
142	142	only in connection with an apprentice first employed on or after
143	143	the effective date of this Act.
144	144	SECTION 4. This Act takes effect January 1, 2026.