Bill Text: TX HB3785 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for taxable entities that employ certain apprentices.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to Ways & Means [HB3785 Detail]
Download: Texas-2023-HB3785-Introduced.html
88R11832 RDS-D | ||
By: Guillen | H.B. No. 3785 |
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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. |