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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 certain taxable entities |
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that provide certain employees with job-related skills training. |
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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 K to read as follows: |
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SUBCHAPTER K. TAX CREDIT FOR EMPLOYMENT AND TRAINING OF CERTAIN |
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EMPLOYEES |
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Sec. 171.551. DEFINITIONS. In this subchapter: |
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(1) "Eligible worker training program" means a |
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training program that improves a qualified employee's job-related |
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skills in a manner that is necessary to adapt to new demands in the |
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workplace due to the adoption of new technology, equipment, or |
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innovation, including: |
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(A) a program that assists a qualified employee |
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in successfully obtaining one or more industry-recognized |
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certificates or credentials; |
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(B) a post-secondary vocational or job training |
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program that assists a qualified employee in successfully obtaining |
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a license or an associate degree from an accredited institution of |
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higher education; or |
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(C) a training program developed under the |
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federal Workforce Innovation and Opportunity Act (29 U.S.C. Section |
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3101 et seq.). |
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(2) "Qualified employee" means an employee who, during |
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the period for which the credit is claimed, works for a qualified |
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employer not less than 35 hours per week for six consecutive months |
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and: |
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(A) is enrolled in the Jobs Corps program |
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administered by the United States Department of Labor; |
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(B) holds an active employment authorization |
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document issued through the federal Deferred Action for Childhood |
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Arrivals program; or |
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(C) holds an active H2-A or H2-B visa authorizing |
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the employee to work in the United States. |
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(3) "Qualified employer" means a taxable entity that |
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is engaged in an industry that is experiencing a shortage of workers |
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due to a lack of technical skills and technological disruption that |
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requires significant capital investment for the entity to remain |
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competitive within the industry, including: |
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(A) agriculture; |
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(B) manufacturing; |
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(C) food service; |
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(D) transit; |
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(E) advanced technologies and manufacturing; |
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(F) aerospace and defense; |
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(G) biotechnology and life science; |
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(H) information and computer technology; |
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(I) logistics and transportation; |
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(J) petroleum refining or chemical production; |
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and |
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(K) energy production. |
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Sec. 171.552. ENTITLEMENT TO CREDIT. A qualified employer |
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is entitled to a credit in the amount and under the conditions |
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provided by this subchapter against the tax imposed under this |
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chapter. |
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Sec. 171.553. QUALIFICATION FOR CREDIT. A qualified |
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employer qualifies for a credit under this subchapter if, during |
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the period for which the report on which the credit is claimed is |
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based, the qualified employer implements an eligible worker |
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training program. |
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Sec. 171.554. AMOUNT OF CREDIT; LIMITATION. (a) Subject to |
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Subsection (b), the amount of the credit a qualified employer may |
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claim on a report is an amount equal to the sum of $500 multiplied by |
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the number of qualified employees employed by the qualified |
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employer and that completed an eligible worker training program |
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offered by the employer during the period covered by the report. |
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(b) The total credit claimed on a report may not exceed the |
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amount of franchise tax due for the report after the application of |
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any other applicable credits. |
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Sec. 171.555. APPLICATION FOR CREDIT. (a) A qualified |
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employer must apply for a credit under this subchapter on or with |
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the 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 qualified employer must use the form |
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in applying for the credit. |
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(c) The comptroller may require a qualified employer to |
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submit with an application any other information the comptroller |
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determines is necessary to determine whether the employer qualifies |
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for the credit under Section 171.553. |
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Sec. 171.556. RULES. The comptroller shall adopt rules |
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necessary to implement and administer this subchapter. |
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SECTION 2. Subchapter K, Chapter 171, Tax Code, as added by |
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this Act, applies only to a report originally due on or after |
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January 1, 2024. |
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SECTION 3. This Act takes effect January 1, 2024. |