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.