Bill Text: TX SB685 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to providing a sales and use tax refund or franchise tax credit for businesses that employ certain apprentices.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2019-05-16 - Co-author authorized [SB685 Detail]
Download: Texas-2019-SB685-Introduced.html
86R7369 GRM-D | ||
By: Alvarado | S.B. No. 685 |
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relating to providing a sales and use tax refund or franchise tax | ||
credit for businesses that employ certain apprentices. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended | ||
by adding Section 151.4292 to read as follows: | ||
Sec. 151.4292. TAX REFUND FOR WAGES PAID TO CERTAIN | ||
APPRENTICES. (a) In this section, "qualified apprenticeship" | ||
means an apprenticeship program that is: | ||
(1) certified as an industry-recognized | ||
apprenticeship program by an entity determined to meet United | ||
States Department of Labor criteria; or | ||
(2) registered with the United States Department of | ||
Labor and qualified to receive funding provided through the Texas | ||
Workforce Commission under Chapter 133, Education Code. | ||
(b) Except as provided by Subsection (e), a person is | ||
eligible for a refund in the amount and under the conditions | ||
provided by this section of the taxes paid under this chapter during | ||
a calendar year if the person employs at least one apprentice in a | ||
qualified apprenticeship position for at least seven months during | ||
the calendar year. | ||
(c) Subject to Subsection (d), the amount of the refund for | ||
a calendar year in connection with each apprentice described by | ||
Subsection (b) is equal to the lesser of: | ||
(1) 50 percent of the wages paid by the person to the | ||
apprentice during the calendar year; or | ||
(2) $2,500. | ||
(d) The total amount of the refund for a calendar year is | ||
equal to the lesser of: | ||
(1) the amount allowed under Subsection (c) for the | ||
calendar year for not more than five apprentices; or | ||
(2) the amount of sales and use taxes paid by the | ||
person during the calendar year. | ||
(e) A person is not eligible for a refund under this section | ||
for a calendar year if the person will, as a taxable entity as | ||
defined by Section 171.0002 or as a member of a combined group that | ||
is a taxable entity, claim a credit under Subchapter T, Chapter 171, | ||
on a franchise tax report covering all or part of that calendar | ||
year. | ||
(f) A person is not eligible for a refund under this section | ||
in connection with wages paid to an individual apprentice for more | ||
than 48 months. | ||
(g) A person must apply to the comptroller to receive a | ||
refund under this section. | ||
SECTION 2. Chapter 171, Tax Code, is amended by adding | ||
Subchapter T to read as follows: | ||
SUBCHAPTER T. TAX CREDIT FOR WAGES PAID TO CERTAIN APPRENTICES | ||
Sec. 171.9201. DEFINITION. In this subchapter, "qualified | ||
apprenticeship" has the meaning assigned by Section 151.4292. | ||
Sec. 171.9202. 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. 171.9203. QUALIFICATION. Except as provided by | ||
Section 171.9205, a taxable entity qualifies for a credit under | ||
this subchapter for a report if the taxable entity employs at least | ||
one apprentice in a qualified apprenticeship position for at least | ||
seven months during the period on which the report is based. | ||
Sec. 171.9204. AMOUNT; LIMITATIONS. (a) Subject to | ||
Subsection (b), the amount of the credit for a report in connection | ||
with each apprentice described by Section 171.9203 is equal to the | ||
lesser of: | ||
(1) 50 percent of the wages paid by the taxable entity | ||
to the apprentice; or | ||
(2) $2,500. | ||
(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 not more than five apprentices; or | ||
(2) the amount of franchise tax due after applying all | ||
other applicable credits. | ||
(c) A taxable entity may not claim a credit in connection | ||
with an individual apprentice for wages paid to the apprentice for | ||
more than 48 months. | ||
Sec. 171.9205. INELIGIBILITY FOR CREDIT FOR CERTAIN | ||
PERIODS. A taxable entity is not eligible for a credit on a report | ||
if the taxable entity, or a member of the combined group if the | ||
taxable entity is a combined group, received, for taxes paid under | ||
Chapter 151 during the period on which the report is based, a refund | ||
under Section 151.4292. | ||
Sec. 171.9206. 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. 171.9207. 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. | ||
SECTION 3. (a) A person may apply for a refund under | ||
Section 151.4292, Tax Code, as added by this Act, only in connection | ||
with wages paid on or after the effective date of this Act. | ||
(b) A taxable entity may claim the credit under Subchapter | ||
T, 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 4. This Act takes effect January 1, 2020. |