Bill Text: TX HB1127 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to a franchise tax credit pilot program for taxable entities that employ certain apprentices.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2017-05-02 - Committee report sent to Calendars [HB1127 Detail]
Download: Texas-2017-HB1127-Comm_Sub.html
85R5748 GRM-D | ||
By: Raymond, King of Uvalde | H.B. No. 1127 |
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relating to a franchise tax credit pilot program 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 N to read as follows: | ||
SUBCHAPTER N. TAX CREDIT PILOT PROGRAM FOR WAGES PAID TO CERTAIN | ||
APPRENTICES | ||
Sec. 171.701. DEFINITION. In this subchapter, "registered | ||
apprenticeship" means an apprenticeship program that is: | ||
(1) registered with the United States Department of | ||
Labor; and | ||
(2) qualified to receive funding provided through the | ||
Texas Workforce Commission under Chapter 133, Education Code. | ||
Sec. 171.702. 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. 171.703. QUALIFICATION. (a) A taxable entity | ||
qualifies for a credit under this subchapter for wages paid to each | ||
apprentice who meets the requirements of Subsection (b) and is | ||
employed by the taxable entity in a registered apprenticeship | ||
position that is located or based in a county that borders the | ||
United Mexican States. | ||
(b) The apprentice must: | ||
(1) be a member of a household with a total income that | ||
is at or below the income guidelines necessary to qualify for the | ||
national free or reduced-price lunch program established under 42 | ||
U.S.C. Section 1751 et seq.; or | ||
(2) reside in a census tract in which 30 percent or | ||
more of the population has a household income at or below 185 | ||
percent of the federal poverty level. | ||
Sec. 171.704. AMOUNT; LIMITATIONS. (a) Subject to | ||
Subsection (b), the amount of the credit for a report in connection | ||
with each apprentice described by Section 171.703 is equal to the | ||
lesser of: | ||
(1) 50 percent of the wages paid by the taxable entity | ||
to the apprentice; or | ||
(2) $5,000. | ||
(b) The total amount of the credit for each report is equal | ||
to the lesser of: | ||
(1) the total of the credits allowed under Subsection | ||
(a) for the reporting period for all apprentices; or | ||
(2) the amount of franchise tax due after applying all | ||
other applicable credits. | ||
Sec. 171.705. 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. 171.706. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A | ||
taxable entity may claim a credit under this subchapter for a report | ||
only in connection with wages paid during the accounting period on | ||
which the report is based. | ||
Sec. 171.707. REPORT ON PILOT PROGRAM. (a) Not later than | ||
September 1, 2022, the comptroller shall prepare and deliver to the | ||
governor, the lieutenant governor, the speaker of the house of | ||
representatives, and the presiding officer of each legislative | ||
standing committee with primary jurisdiction over taxation a report | ||
that evaluates the effect of the pilot program on the employment | ||
outcomes and earnings of apprentices with respect to whom credits | ||
are granted under the pilot program under this subchapter. The | ||
report must include a recommendation regarding whether the pilot | ||
program should be continued, expanded, or terminated. | ||
(b) A taxable entity that claims a credit under this | ||
subchapter shall provide to the comptroller information the | ||
comptroller requests to prepare the report described by Subsection | ||
(a). | ||
Sec. 171.708. EXPIRATION. This subchapter expires December | ||
31, 2024. | ||
SECTION 2. A taxable entity may claim the credit under | ||
Subchapter N, Chapter 171, Tax Code, as added by this Act, only for | ||
wages paid on or after the effective date of this Act and only on a | ||
franchise tax report originally due under Chapter 171, Tax Code, on | ||
or after that date. | ||
SECTION 3. This Act takes effect January 1, 2018. |