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.