Bill Text: TX HB595 | 2017-2018 | 85th Legislature | Comm Sub

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Bill Title: Relating to a franchise tax credit for entities that employ certain students in certain paid internship or similar programs.

Spectrum: 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

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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

A BILL TO BE ENTITLED
AN ACT
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.