88R11832 RDS-D
 
  By: Guillen H.B. No. 3785
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a franchise tax credit for taxable entities that employ
  certain apprentices.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 171, Tax Code, is amended by adding
  Subchapter K to read as follows:
  SUBCHAPTER K. TAX CREDIT FOR EMPLOYMENT OF APPRENTICES
         Sec. 171.551.  DEFINITION. In this subchapter, "qualifying
  apprentice" means an individual who is employed by a taxable
  entity:
               (1)  for the purpose of learning a vocational trade;
               (2)  as an apprentice; or
               (3)  while enrolled in a work-based learning program.
         Sec. 171.552.  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. 171.553.  QUALIFICATION; CERTIFICATE OF ELIGIBILITY.
  (a) A taxable entity qualifies for a credit under this subchapter
  if, during the period for which the credit is claimed, the entity
  employs at least one qualifying apprentice.
         (b)  Before claiming a credit under this subchapter, a
  taxable entity must request a certificate of eligibility from the
  Texas Workforce Commission or the Office of Apprenticeship of the
  United States Department of Labor stating that the entity employed
  at least one qualifying apprentice during the period for which the
  credit is claimed.
         Sec. 171.554.  AMOUNT OF CREDIT; LIMITATION. (a) Subject to
  Subsection (b), the amount of the credit a taxable entity may claim
  on a report is an amount equal to the lesser of:
               (1)  the sum of the following amounts:
                     (A)  $2,000 multiplied by the number of qualifying
  apprentices employed by the entity during the period covered by the
  report that are at least 16 years of age but younger than 18 years of
  age;
                     (B)  $4,000 multiplied by the number of qualifying
  apprentices employed by the entity during the period covered by the
  report that are at least 18 years of age and are not described by
  Paragraph (C); and
                     (C)  $6,000 multiplied by the number of qualifying
  apprentices employed by the entity during the period covered by the
  report that are at least 18 years of age and are veterans of the
  United States armed services or the Texas military forces; or
               (2)  $100,000.
         (b)  The total credit claimed on a report may not exceed the
  amount of franchise tax due for the report after the application of
  any other applicable credits.
         Sec. 171.555.  APPLICATION FOR CREDIT. (a) A taxable entity
  must apply for a credit under this subchapter on or with the 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 and must include with the application any
  certificates received from the Texas Workforce Commission or the
  Office of Apprenticeship of the United States Department of Labor
  during the period for which the credit is claimed.
         (c)  The comptroller may require a taxable entity to submit
  with an application any other information the comptroller
  determines is necessary to determine whether the entity qualifies
  for the credit under Section 171.553.
         Sec. 171.556.  CARRYFORWARD. (a) If a taxable entity is
  eligible for a credit that exceeds the limitation under Section
  171.554(b), the entity may carry the unused credit forward for up to
  two consecutive reports.
         (b)  A carryforward is considered the remaining portion of a
  credit that cannot be claimed in the current year because of the
  limitation under Section 171.554(b).
         (c)  Credits, including a carryforward, are considered to be
  used in the following order:
               (1)  a carryforward under this subchapter; and
               (2)  a current year credit.
         Sec. 171.557.  RULES. The comptroller shall adopt rules
  necessary to implement and administer this subchapter.
         SECTION 2.  Subchapter K, Chapter 171, Tax Code, as added by
  this Act, applies only to a report originally due on or after
  January 1, 2024.
         SECTION 3.  This Act takes effect January 1, 2024.