85R1645 ADM-D
 
  By: Miles S.B. No. 518
 
 
 
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 HIGH
  SCHOOL 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 the curriculum requirements for an
  endorsement under Section 28.025(c-1), Education Code.
               (3)  "Eligible student" means a student enrolled in a
  public high school who has reached the minimum age required under
  Chapter 51, Labor Code, to legally work in the eligible internship
  program.
         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.  COMMISSION RULES. The commission, after
  consulting with the commissioner of education, shall adopt rules
  providing the requirements that an internship or similar program
  must meet to be considered an eligible internship program under
  this subchapter.
         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.