Bill Text: TX SB518 | 2017-2018 | 85th Legislature | Engrossed
Bill Title: Relating to a franchise tax credit for entities that employ certain students in certain paid internship or similar programs.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Engrossed - Dead) 2017-05-02 - Referred to Ways & Means [SB518 Detail]
Download: Texas-2017-SB518-Engrossed.html
By: Miles, et al. | S.B. No. 518 |
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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 HIGH | ||
SCHOOL 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 meets the requirements of rules | ||
adopted by the commission under Section 171.875 and requires an | ||
eligible student to work at least the number of hours equivalent to | ||
five hours per week for one semester. | ||
(3) "Eligible student" means a home-schooled student | ||
or a student enrolled in a public, private, or charter school who | ||
has reached the minimum age required under Chapter 51, Labor Code, | ||
to legally work in the eligible internship program. | ||
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. | ||
(d) The total amount of tax credits that may be awarded | ||
under this subchapter may not exceed $5 million in a state fiscal | ||
biennium. | ||
(e) The comptroller by rule shall prescribe procedures by | ||
which the comptroller may allocate credits under this subchapter. | ||
The procedures must provide that credits are allocated to taxable | ||
entities that apply under Section 171.876 on a first-come, | ||
first-served basis. | ||
Sec. 171.875. COMMISSION RULES. The commission, after | ||
consulting with the commissioner of education, shall adopt rules | ||
providing the requirements that an internship or similar program | ||
must meet to be considered an eligible internship program under | ||
this subchapter. | ||
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. | ||
Sec. 171.878. BIENNIAL STUDY AND REPORT. (a) In this | ||
section, "school" refers to the school of public affairs at Texas | ||
Southern University. | ||
(b) The school shall biennially study and report on the | ||
effectiveness of the tax credit established by this subchapter in | ||
creating jobs. The report must include, to the extent available, | ||
for each privilege period covered by the report: | ||
(1) the total number of eligible internship programs | ||
offered in which eligible students participated and the total | ||
amount of credits claimed by taxable entities for those internship | ||
programs; | ||
(2) the total number of eligible students who | ||
completed an eligible internship program and who were subsequently | ||
hired for a permanent job in this state by the taxable entity that | ||
offered the program; | ||
(3) for the permanent jobs described by Subdivision | ||
(2): | ||
(A) the median wage of those jobs; | ||
(B) the North American Industry Classification | ||
System classification of each of those jobs; and | ||
(C) the number of those jobs that provide health | ||
benefits coverage; | ||
(4) the number of taxable entities receiving a credit | ||
that are historically underutilized businesses, as that term is | ||
defined by Section 2161.001, Government Code, and the total amount | ||
of credits claimed by those entities; | ||
(5) demographic information on students participating | ||
in eligible internship programs under this subchapter, including | ||
the schools in which the students are enrolled, to the extent | ||
allowed under state and federal law; and | ||
(6) an assessment of the number of eligible internship | ||
programs that would not have been offered in the absence of the | ||
credit and the total number of students who completed those | ||
programs, including: | ||
(A) for the 2018 privilege period, a comparison | ||
of the number of students for which a credit is reported under | ||
Subdivision (1) to the number of public high school students of | ||
legal working age who were employed in this state for any period of | ||
time during the 2017 privilege period by the taxable entities that | ||
offered eligible internship programs reported under Subdivision | ||
(1) for the 2018 privilege period; and | ||
(B) for the 2018 privilege period and each | ||
subsequent period, an estimate of the number of public high school | ||
students of legal working age who were employed in this state for | ||
any period of time during the privilege period outside of an | ||
eligible internship program. | ||
(c) To the extent allowed by law, the comptroller, the Texas | ||
Higher Education Coordinating Board, and any other appropriate | ||
state agency shall assist the school in obtaining the information | ||
needed to prepare the report required under Subsection (b). | ||
(d) Not later than December 1 of each even-numbered year, | ||
the school shall submit the report required under Subsection (b) to | ||
the governor, the lieutenant governor, and the legislature. The | ||
report may be submitted electronically. | ||
Sec. 171.879. EXPIRATION. (a) This subchapter expires | ||
December 31, 2023. | ||
(b) The expiration of this subchapter does not affect the | ||
carryforward of a credit authorized under this subchapter | ||
established before the date this subchapter expires. | ||
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 a paid internship | ||
or similar program on or after the effective date of this Act and | ||
only on a franchise tax report originally due under Chapter 171, Tax | ||
Code, on or after that date. | ||
SECTION 3. The first report required by Section 171.878, | ||
Tax Code, as added by this Act, is due not later than December 1, | ||
2018. | ||
SECTION 4. This Act takes effect January 1, 2018. |