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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 that employ certain |
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students in certain paid internship or similar programs. |
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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 O to read as follows: |
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SUBCHAPTER O. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN HIGH |
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SCHOOL STUDENTS |
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Sec. 171.801. DEFINITIONS. In this subchapter: |
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(1) "Commission" means the Texas Workforce |
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Commission. |
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(2) "Eligible internship program" means a paid |
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internship or similar program that: |
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(A) meets the requirements of rules adopted by |
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the commission under Section 171.806; and |
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(B) is part of: |
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(i) the curriculum requirements for an |
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endorsement under Section 28.025(c-1), Education Code; or |
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(ii) a course of study in a nontraditional |
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secondary education that is substantially similar, under rules |
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adopted by the commissioner of education under Section 171.805, to |
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the curriculum requirements described by Subparagraph (i). |
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(3) "Eligible student" means a high school student who |
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has reached the minimum age required under Chapter 51, Labor Code, |
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to legally work in the eligible internship program. |
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(4) "Nontraditional secondary education" means a |
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course of study at the secondary school level in a nonaccredited |
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private school setting, including a home school. |
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Sec. 171.802. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions provided |
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by this subchapter against the tax imposed under this chapter. |
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Sec. 171.803. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter for each eligible student who |
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completes an eligible internship program offered by the taxable |
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entity. |
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Sec. 171.804. AMOUNT; LIMITATIONS. (a) The amount of the |
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credit is $1,000 for each eligible student who completes an |
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eligible internship program offered by the taxable entity. |
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(b) A taxable entity may claim the credit only for an |
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eligible internship program offered by the taxable entity that is |
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located or based in this state. |
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Sec. 171.805. COMMISSIONER OF EDUCATION RULES. The |
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commissioner of education shall adopt rules to determine, for a |
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student receiving a nontraditional secondary education, if the |
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student's course of study is substantially similar to the |
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curriculum requirements for an endorsement described by Section |
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28.025(c-1), Education Code. |
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Sec. 171.806. COMMISSION RULES. The commission shall adopt |
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rules providing the requirements that an internship or similar |
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program must meet to be considered an eligible internship program |
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under this subchapter. |
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Sec. 171.807. APPLICATION FOR CREDIT. (a) 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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(b) The comptroller shall promulgate a form for the |
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application for the credit. A taxable entity must use the form in |
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applying for the credit. |
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Sec. 171.808. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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taxable entity may claim a credit under this subchapter against the |
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tax owed for a privilege period only in connection with an eligible |
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student who completes an eligible internship program during the |
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privilege period. |
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SECTION 2. A taxable entity may claim the credit under |
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Subchapter O, Chapter 171, Tax Code, as added by this Act, only in |
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connection with an eligible student who completes an eligible |
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internship program on or after the effective date of this Act and |
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only on a franchise tax report due under Chapter 171, Tax Code, on |
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or after January 1, 2016. |
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SECTION 3. This Act takes effect January 1, 2016. |