Bill Text: TX HB1387 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for entities offering internships to certain college students.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-09 - Referred to Ways & Means [HB1387 Detail]
Download: Texas-2015-HB1387-Introduced.html
84R6518 GRM-D | ||
By: Anderson of Dallas | H.B. No. 1387 |
|
||
|
||
relating to a franchise tax credit for entities offering | ||
internships to certain college students. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter U to read as follows: | ||
SUBCHAPTER U. TAX CREDITS FOR INTERNSHIPS FOR CERTAIN COLLEGE | ||
STUDENTS | ||
Sec. 171.961. DEFINITIONS. In this subchapter, | ||
"institution of higher education" and "private or independent | ||
institution of higher education" have the meanings assigned by | ||
Section 61.003, Education Code. | ||
Sec. 171.962. ENTITLEMENT TO CREDIT. A taxable entity is | ||
entitled to a credit in the amount and under the conditions and | ||
limitations provided by this subchapter against the tax imposed | ||
under this chapter. | ||
Sec. 171.963. QUALIFICATION. A taxable entity qualifies | ||
for a credit under this subchapter if: | ||
(1) the taxable entity offers an internship of at | ||
least six weeks in duration to a student who is enrolled in an | ||
institution of higher education or a private or independent | ||
institution of higher education; and | ||
(2) the student completes the internship offered by | ||
the taxable entity during the period on which a tax report is based. | ||
Sec. 171.964. AMOUNT; LIMITATIONS. (a) The amount of the | ||
credit is $1,000, regardless of whether more than one internship is | ||
offered by a taxable entity and completed during the period on which | ||
a tax report is based. | ||
(b) The total credit claimed for a report, including the | ||
amount of any carryforward under Section 171.965, may not exceed | ||
the amount of franchise tax due for the report after all other | ||
applicable tax credits. | ||
(c) A taxable entity may not convey, assign, or transfer a | ||
credit under this subchapter to another entity unless all of the | ||
assets of the taxable entity are conveyed, assigned, or transferred | ||
in the same transaction. | ||
Sec. 171.965. CARRYFORWARD. (a) If a taxable entity is | ||
eligible for a credit that exceeds the limitation under Section | ||
171.964(b), the entity may carry the unused credit forward for not | ||
more than three consecutive reports. | ||
(b) Credits, including credit carryforwards, are considered | ||
to be used in the following order: | ||
(1) a credit carryforward under this subchapter; and | ||
(2) a current year credit. | ||
Sec. 171.966. APPLICATION FOR CREDIT. A taxable entity | ||
must apply for a credit under this subchapter on or with the tax | ||
report for the period for which the credit is claimed. | ||
Sec. 171.967. RULES. The comptroller shall adopt rules | ||
necessary to implement this subchapter. | ||
Sec. 171.968. EXPIRATION. (a) This subchapter expires | ||
December 31, 2019. | ||
(b) The expiration of this subchapter does not affect the | ||
carryforward of a credit under Section 171.965 or a credit | ||
authorized under this subchapter established before the date this | ||
subchapter expires. A taxable entity that has any unused credits | ||
established under this subchapter may continue to apply those | ||
credits on or with each consecutive report until the date the credit | ||
would have expired under this subchapter had this subchapter not | ||
expired, and this subchapter is continued in effect notwithstanding | ||
its repeal for the purposes of determining the amount of the credit | ||
the taxable entity may claim and the manner in which the taxable | ||
entity may claim the credit. | ||
SECTION 2. A taxable entity may claim the credit under | ||
Subchapter U, Chapter 171, Tax Code, as added by this Act, only in | ||
connection with an internship that is completed on or after the | ||
effective date of this Act and only on a franchise tax report due | ||
under Chapter 171, Tax Code, on or after January 1, 2016. | ||
SECTION 3. This Act takes effect January 1, 2016. |