Bill Text: TX HB5263 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for certain taxable entities that provide certain employees with job-related skills training.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-24 - Referred to Ways & Means [HB5263 Detail]
Download: Texas-2023-HB5263-Introduced.html
| 88R9814 RDS-D | ||
| By: Lopez of Bexar | H.B. No. 5263 | |
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| relating to a franchise tax credit for certain taxable entities | ||
| that provide certain employees with job-related skills training. | ||
| 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 AND TRAINING OF CERTAIN | ||
| EMPLOYEES | ||
| Sec. 171.551. DEFINITIONS. In this subchapter: | ||
| (1) "Eligible worker training program" means a | ||
| training program that improves a qualified employee's job-related | ||
| skills in a manner that is necessary to adapt to new demands in the | ||
| workplace due to the adoption of new technology, equipment, or | ||
| innovation, including: | ||
| (A) a program that assists a qualified employee | ||
| in successfully obtaining one or more industry-recognized | ||
| certificates or credentials; | ||
| (B) a post-secondary vocational or job training | ||
| program that assists a qualified employee in successfully obtaining | ||
| a license or an associate degree from an accredited institution of | ||
| higher education; or | ||
| (C) a training program developed under the | ||
| federal Workforce Innovation and Opportunity Act (29 U.S.C. Section | ||
| 3101 et seq.). | ||
| (2) "Qualified employee" means an employee who, during | ||
| the period for which the credit is claimed, works for a qualified | ||
| employer not less than 35 hours per week for six consecutive months | ||
| and: | ||
| (A) is enrolled in the Jobs Corps program | ||
| administered by the United States Department of Labor; | ||
| (B) holds an active employment authorization | ||
| document issued through the federal Deferred Action for Childhood | ||
| Arrivals program; or | ||
| (C) holds an active H2-A or H2-B visa authorizing | ||
| the employee to work in the United States. | ||
| (3) "Qualified employer" means a taxable entity that | ||
| is engaged in an industry that is experiencing a shortage of workers | ||
| due to a lack of technical skills and technological disruption that | ||
| requires significant capital investment for the entity to remain | ||
| competitive within the industry, including: | ||
| (A) agriculture; | ||
| (B) manufacturing; | ||
| (C) food service; | ||
| (D) transit; | ||
| (E) advanced technologies and manufacturing; | ||
| (F) aerospace and defense; | ||
| (G) biotechnology and life science; | ||
| (H) information and computer technology; | ||
| (I) logistics and transportation; | ||
| (J) petroleum refining or chemical production; | ||
| and | ||
| (K) energy production. | ||
| Sec. 171.552. ENTITLEMENT TO CREDIT. A qualified employer | ||
| 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 FOR CREDIT. A qualified | ||
| employer qualifies for a credit under this subchapter if, during | ||
| the period for which the report on which the credit is claimed is | ||
| based, the qualified employer implements an eligible worker | ||
| training program. | ||
| Sec. 171.554. AMOUNT OF CREDIT; LIMITATION. (a) Subject to | ||
| Subsection (b), the amount of the credit a qualified employer may | ||
| claim on a report is an amount equal to the sum of $500 multiplied by | ||
| the number of qualified employees employed by the qualified | ||
| employer and that completed an eligible worker training program | ||
| offered by the employer during the period covered by the report. | ||
| (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 qualified | ||
| employer 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 qualified employer must use the form | ||
| in applying for the credit. | ||
| (c) The comptroller may require a qualified employer to | ||
| submit with an application any other information the comptroller | ||
| determines is necessary to determine whether the employer qualifies | ||
| for the credit under Section 171.553. | ||
| Sec. 171.556. 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. | ||
