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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 R to read as follows: |
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SUBCHAPTER R. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN |
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STUDENTS |
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Sec. 171.871. 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 171.875; 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; |
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(ii) the curriculum for a public junior |
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college; or |
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(iii) a course of study in a private school |
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or a nontraditional secondary education setting, such as a home |
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school setting, that is substantially similar, under rules adopted |
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by the commissioner of education under Section 171.875, to the |
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curriculum requirements described by Subparagraph (i). |
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(3) "Eligible student" means a student who has reached |
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the minimum age required under Chapter 51, Labor Code, to legally |
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work in the eligible internship program and who is enrolled: |
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(A) in a public or private school; |
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(B) in a course of study in a nontraditional |
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secondary education setting, including a home school setting; or |
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(C) full-time or part-time in a public junior |
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college. |
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(4) "Private school" means a school that: |
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(A) offers a course of instruction for students |
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in one or more grades from prekindergarten through grade 12; and |
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(B) is not operated by a governmental entity. |
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(5) "Public junior college" has the meaning assigned |
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by Section 61.003, Education Code. |
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Sec. 171.872. 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. 171.873. QUALIFICATION FOR CREDIT. A taxable entity |
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qualifies for a credit under this subchapter for each eligible |
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student who completes an eligible internship program offered by the |
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taxable entity. |
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Sec. 171.874. AMOUNT OF CREDIT; LIMITATIONS. (a) The |
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amount of the credit is $1,000 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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(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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(c) A taxable entity may not claim the credit in connection |
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with an eligible student if an owner of the taxable entity is |
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related to the eligible student within the third degree of |
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consanguinity as determined under Subchapter B, Chapter 573, |
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Government Code. |
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Sec. 171.875. RULES. (a) The commission, after consulting |
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with the commissioner of education and the Texas Higher Education |
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Coordinating Board, shall adopt rules providing the requirements |
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that an internship or similar program must meet to be considered an |
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eligible internship program under this subchapter. Rules adopted |
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by the commission under this subsection must be consistent with the |
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rules adopted by the commissioner of education under Subsection |
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(b). |
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(b) The commissioner of education shall adopt rules to |
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determine whether a student's course of study in a private school or |
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nontraditional secondary education setting is substantially |
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similar to the curriculum requirements for an endorsement described |
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by Section 28.025(c-1), Education Code. |
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Sec. 171.876. 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. 171.877. 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 R, 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, 2018. |
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SECTION 3. This Act takes effect January 1, 2018. |