Bill Text: TX HB595 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to a franchise tax credit for entities that employ certain students in certain paid internship or similar programs.
Sponsorship: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2017-05-06 - Committee report sent to Calendars [HB595 Detail]
Download: Texas-2017-HB595-Comm_Sub.html
| 85R15356 ADM-D | |||
| By: Workman, Lucio III, Murphy, Bohac | H.B. No. 595 | ||
| Substitute the following for H.B. No. 595: | |||
| By: Bohac | C.S.H.B. No. 595 | ||
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| relating to a franchise tax credit for entities that employ certain | ||
| students in certain paid internship or similar programs. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
| Subchapter R to read as follows: | ||
| SUBCHAPTER R. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN | ||
| STUDENTS | ||
| Sec. 171.871. DEFINITIONS. In this subchapter: | ||
| (1) "Commission" means the Texas Workforce | ||
| Commission. | ||
| (2) "Eligible internship program" means a paid | ||
| internship or similar program that: | ||
| (A) meets the requirements of rules adopted by | ||
| the commission under Section 171.875; and | ||
| (B) is part of: | ||
| (i) the curriculum requirements for an | ||
| endorsement under Section 28.025(c-1), Education Code; | ||
| (ii) the curriculum for a public junior | ||
| college; or | ||
| (iii) a course of study in a private school | ||
| or a nontraditional secondary education setting, such as a home | ||
| school setting, that is substantially similar, under rules adopted | ||
| by the commissioner of education under Section 171.875, to the | ||
| curriculum requirements described by Subparagraph (i). | ||
| (3) "Eligible student" means a student who has reached | ||
| the minimum age required under Chapter 51, Labor Code, to legally | ||
| work in the eligible internship program and who is enrolled: | ||
| (A) in a public or private school; | ||
| (B) in a course of study in a nontraditional | ||
| secondary education setting, including a home school setting; or | ||
| (C) full-time or part-time in a public junior | ||
| college. | ||
| (4) "Private school" means a school that: | ||
| (A) offers a course of instruction for students | ||
| in one or more grades from prekindergarten through grade 12; and | ||
| (B) is not operated by a governmental entity. | ||
| (5) "Public junior college" has the meaning assigned | ||
| by Section 61.003, Education Code. | ||
| Sec. 171.872. ENTITLEMENT TO CREDIT. A taxable entity is | ||
| entitled to a credit in the amount and under the conditions provided | ||
| by this subchapter against the tax imposed under this chapter. | ||
| Sec. 171.873. QUALIFICATION FOR CREDIT. A taxable entity | ||
| qualifies for a credit under this subchapter for each eligible | ||
| student who completes an eligible internship program offered by the | ||
| taxable entity. | ||
| Sec. 171.874. AMOUNT OF CREDIT; LIMITATIONS. (a) The | ||
| amount of the credit is $1,000 for each eligible student who | ||
| completes an eligible internship program offered by the taxable | ||
| entity. | ||
| (b) A taxable entity may claim the credit only for an | ||
| eligible internship program offered by the taxable entity that is | ||
| located or based in this state. | ||
| (c) A taxable entity may not claim the credit in connection | ||
| with an eligible student if an owner of the taxable entity is | ||
| related to the eligible student within the third degree of | ||
| consanguinity as determined under Subchapter B, Chapter 573, | ||
| Government Code. | ||
| Sec. 171.875. RULES. (a) The commission, after consulting | ||
| with the commissioner of education and the Texas Higher Education | ||
| Coordinating Board, shall adopt rules providing the requirements | ||
| that an internship or similar program must meet to be considered an | ||
| eligible internship program under this subchapter. Rules adopted | ||
| by the commission under this subsection must be consistent with the | ||
| rules adopted by the commissioner of education under Subsection | ||
| (b). | ||
| (b) The commissioner of education shall adopt rules to | ||
| determine whether a student's course of study in a private school or | ||
| nontraditional secondary education setting is substantially | ||
| similar to the curriculum requirements for an endorsement described | ||
| by Section 28.025(c-1), Education Code. | ||
| Sec. 171.876. APPLICATION FOR CREDIT. (a) 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. | ||
| (b) The comptroller shall promulgate a form for the | ||
| application for the credit. A taxable entity must use the form in | ||
| applying for the credit. | ||
| Sec. 171.877. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A | ||
| taxable entity may claim a credit under this subchapter against the | ||
| tax owed for a privilege period only in connection with an eligible | ||
| student who completes an eligible internship program during the | ||
| privilege period. | ||
| SECTION 2. A taxable entity may claim the credit under | ||
| Subchapter R, Chapter 171, Tax Code, as added by this Act, only in | ||
| connection with an eligible student who completes an eligible | ||
| internship program 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, 2018. | ||
| SECTION 3. This Act takes effect January 1, 2018. | ||
