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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for entities offering |
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internships to certain college students. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter U to read as follows: |
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SUBCHAPTER U. TAX CREDITS FOR INTERNSHIPS FOR CERTAIN COLLEGE |
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STUDENTS |
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Sec. 171.961. DEFINITIONS. In this subchapter, |
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"institution of higher education" and "private or independent |
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institution of higher education" have the meanings assigned by |
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Section 61.003, Education Code. |
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Sec. 171.962. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions and |
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limitations provided by this subchapter against the tax imposed |
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under this chapter. |
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Sec. 171.963. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if: |
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(1) the taxable entity offers an internship of at |
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least six weeks in duration to a student who is enrolled in an |
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institution of higher education or a private or independent |
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institution of higher education; and |
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(2) the student completes the internship offered by |
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the taxable entity during the period on which a tax report is based. |
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Sec. 171.964. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit is $1,000, regardless of whether more than one internship is |
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offered by a taxable entity and completed during the period on which |
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a tax report is based. |
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(b) The total credit claimed for a report, including the |
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amount of any carryforward under Section 171.965, may not exceed |
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the amount of franchise tax due for the report after all other |
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applicable tax credits. |
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(c) A taxable entity may not convey, assign, or transfer a |
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credit under this subchapter to another entity unless all of the |
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assets of the taxable entity are conveyed, assigned, or transferred |
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in the same transaction. |
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Sec. 171.965. CARRYFORWARD. (a) If a taxable entity is |
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eligible for a credit that exceeds the limitation under Section |
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171.964(b), the entity may carry the unused credit forward for not |
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more than three consecutive reports. |
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(b) Credits, including credit carryforwards, are considered |
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to be used in the following order: |
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(1) a credit carryforward under this subchapter; and |
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(2) a current year credit. |
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Sec. 171.966. APPLICATION FOR CREDIT. A taxable entity |
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must apply for a credit under this subchapter on or with the tax |
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report for the period for which the credit is claimed. |
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Sec. 171.967. RULES. The comptroller shall adopt rules |
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necessary to implement this subchapter. |
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Sec. 171.968. EXPIRATION. (a) This subchapter expires |
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December 31, 2019. |
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(b) The expiration of this subchapter does not affect the |
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carryforward of a credit under Section 171.965 or a credit |
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authorized under this subchapter established before the date this |
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subchapter expires. A taxable entity that has any unused credits |
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established under this subchapter may continue to apply those |
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credits on or with each consecutive report until the date the credit |
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would have expired under this subchapter had this subchapter not |
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expired, and this subchapter is continued in effect notwithstanding |
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its repeal for the purposes of determining the amount of the credit |
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the taxable entity may claim and the manner in which the taxable |
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entity may claim the credit. |
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SECTION 2. A taxable entity may claim the credit under |
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Subchapter U, Chapter 171, Tax Code, as added by this Act, only in |
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connection with an internship that is completed on or after the |
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effective date of this Act and only on a franchise tax report due |
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under Chapter 171, Tax Code, on or after January 1, 2016. |
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SECTION 3. This Act takes effect January 1, 2016. |