By Oliveira                                           H.B. No. 1917
         76R2620 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a franchise tax credit for certain teachers or students
 1-3     who participate in corporate summer internship programs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 171, Tax Code, is amended by adding
 1-6     Subchapter P to read as follows:
 1-7            SUBCHAPTER P.  TAX CREDIT FOR TEACHERS OR STUDENTS IN
 1-8                         SUMMER INTERNSHIP PROGRAMS
 1-9           Sec. 171.751.  ENTITLEMENT TO CREDIT.  A corporation is
1-10     entitled to a credit in the amount and under the conditions and
1-11     limitations provided by this subchapter against the tax imposed
1-12     under this chapter.
1-13           Sec. 171.752.  QUALIFICATION.  (a)  A corporation qualifies
1-14     for a credit under this subchapter for each intern who participates
1-15     in an internship program conducted by the corporation as provided
1-16     by this section.
1-17           (b)  The intern must be a teacher or student at:
1-18                 (1)  a public or private high school;
1-19                 (2)  an institution of higher education, as defined by
1-20     Section 61.003, Education Code; or
1-21                 (3)  a private or independent institution of higher
1-22     education, as defined by Section 61.003, Education Code.
1-23           (c)  The internship program must be:
1-24                 (1)  designed to enhance the transition process from
 2-1     school to career in the field of manufacturing or technology;
 2-2                 (2)  at least eight weeks long; and
 2-3                 (3)  designed to promote participation during the
 2-4     summer break between the end and beginning of the school year.
 2-5           (d)  The intern must work a minimum of 10 hours a week.  If
 2-6     an intern works more than 10 hours a week, the corporation must pay
 2-7     the intern for all work performed.
 2-8           (e)  The intern must complete the internship program.
 2-9           Sec. 171.753.  AMOUNT; LIMITATIONS.  (a)  The amount of the
2-10     credit is $1,000 for each intern qualified under Section 171.752.
2-11           (b)  The credit claimed for each privilege period may not
2-12     exceed 50 percent of the amount of net franchise tax due, after any
2-13     other applicable credits, for the privilege period.
2-14           (c)  A corporation may claim the credit only for the
2-15     privilege period during which the internship took place, except
2-16     that a  corporation may carry a credit forward for not more than
2-17     five consecutive privilege periods.
2-18           Sec. 171.754.  APPLICATION FOR CREDIT.  (a)  A corporation
2-19     must apply for a credit under this subchapter on or with the tax
2-20     report for the period for which the credit is claimed.
2-21           (b)  The comptroller shall promulgate a form for the
2-22     application for the credit.  A corporation must use this form in
2-23     applying for the credit.
2-24           Sec. 171.755.  RULES.  The comptroller shall adopt rules
2-25     necessary to implement this subchapter.
2-26           SECTION 2.  This Act takes effect January 1, 2000, and
2-27     applies only to:
 3-1                 (1)  a report originally due on or after that date; and
 3-2                 (2)  interns who begin their internship on or after
 3-3     that date.
 3-4           SECTION 3.  The importance of this legislation and the
 3-5     crowded condition of the calendars in both houses create an
 3-6     emergency and an imperative public necessity that the
 3-7     constitutional rule requiring bills to be read on three several
 3-8     days in each house be suspended, and this rule is hereby suspended.