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A BILL TO BE ENTITLED
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AN ACT
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relating to providing a sales and use tax refund or franchise tax |
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credit for businesses that employ certain apprentices. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
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by adding Section 151.4292 to read as follows: |
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Sec. 151.4292. TAX REFUND FOR WAGES PAID TO CERTAIN |
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APPRENTICES. (a) In this section, "qualified apprenticeship" |
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means an apprenticeship program that is: |
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(1) certified as an industry-recognized |
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apprenticeship program by an entity determined to meet United |
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States Department of Labor criteria; or |
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(2) registered with the United States Department of |
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Labor and qualified to receive funding provided through the Texas |
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Workforce Commission under Chapter 133, Education Code. |
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(b) Except as provided by Subsection (e), a person is |
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eligible for a refund in the amount and under the conditions |
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provided by this section of the taxes paid under this chapter during |
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a calendar year if the person employs at least one apprentice in a |
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qualified apprenticeship position for at least seven months during |
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the calendar year. |
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(c) Subject to Subsection (d), the amount of the refund for |
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a calendar year in connection with each apprentice described by |
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Subsection (b) is equal to the lesser of: |
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(1) 50 percent of the wages paid by the person to the |
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apprentice during the calendar year; or |
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(2) $2,500. |
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(d) The total amount of the refund for a calendar year is |
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equal to the lesser of: |
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(1) the amount allowed under Subsection (c) for the |
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calendar year for not more than five apprentices; or |
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(2) the amount of sales and use taxes paid by the |
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person during the calendar year. |
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(e) A person is not eligible for a refund under this section |
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for a calendar year if the person will, as a taxable entity as |
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defined by Section 171.0002 or as a member of a combined group that |
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is a taxable entity, claim a credit under Subchapter T, Chapter 171, |
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on a franchise tax report covering all or part of that calendar |
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year. |
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(f) A person is not eligible for a refund under this section |
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in connection with wages paid to an individual apprentice for more |
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than 48 months. |
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(g) A person must apply to the comptroller to receive a |
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refund under this section. |
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SECTION 2. Chapter 171, Tax Code, is amended by adding |
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Subchapter T to read as follows: |
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SUBCHAPTER T. TAX CREDIT FOR WAGES PAID TO CERTAIN APPRENTICES |
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Sec. 171.9201. DEFINITION. In this subchapter, "qualified |
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apprenticeship" has the meaning assigned by Section 151.4292. |
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Sec. 171.9202. 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. 171.9203. QUALIFICATION. Except as provided by |
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Section 171.9205, a taxable entity qualifies for a credit under |
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this subchapter for a report if the taxable entity employs at least |
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one apprentice in a qualified apprenticeship position for at least |
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seven months during the period on which the report is based. |
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Sec. 171.9204. AMOUNT; LIMITATIONS. (a) Subject to |
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Subsection (b), the amount of the credit for a report in connection |
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with each apprentice described by Section 171.9203 is equal to the |
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lesser of: |
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(1) 50 percent of the wages paid by the taxable entity |
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to the apprentice; or |
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(2) $2,500. |
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(b) The total amount of the credit for each report is equal |
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to the lesser of: |
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(1) the total of the credits allowed under Subsection |
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(a) for the reporting period for not more than five apprentices; or |
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(2) the amount of franchise tax due after applying all |
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other applicable credits. |
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(c) A taxable entity may not claim a credit in connection |
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with an individual apprentice for wages paid to the apprentice for |
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more than 48 months. |
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Sec. 171.9205. INELIGIBILITY FOR CREDIT FOR CERTAIN |
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PERIODS. A taxable entity is not eligible for a credit on a report |
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if the taxable entity, or a member of the combined group if the |
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taxable entity is a combined group, received, for taxes paid under |
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Chapter 151 during the period on which the report is based, a refund |
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under Section 151.4292. |
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Sec. 171.9206. APPLICATION FOR CREDIT. (a) A taxable |
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entity must apply for a credit under this subchapter on or with the |
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tax 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. 171.9207. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A |
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taxable entity may claim a credit under this subchapter for a report |
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only in connection with wages paid during the accounting period on |
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which the report is based. |
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SECTION 3. (a) A person may apply for a refund under |
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Section 151.4292, Tax Code, as added by this Act, only in connection |
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with wages paid on or after the effective date of this Act. |
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(b) A taxable entity may claim the credit under Subchapter |
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T, Chapter 171, Tax Code, as added by this Act, only for wages paid |
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on or after the effective date of this Act and only on a franchise |
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tax report originally due under Chapter 171, Tax Code, on or after |
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that date. |
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SECTION 4. This Act takes effect January 1, 2020. |