By: Hall S.B. No. 2182               A BILL TO BE ENTITLED   AN ACT   relating to a franchise tax credit for taxable entities that employ   certain apprentices in broadband utility engineering or   construction jobs.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 171, Tax Code, is amended by adding   Subchapter N-1 to read as follows:   SUBCHAPTER N-1. TAX CREDIT FOR EMPLOYMENT OF APPRENTICES FOR   BROADBAND UTILITY CONSTRUCTION          Sec. 171.721.  GENERAL DEFINITIONS. In this subchapter:                (1)  "Broadband utility engineering or construction   job" means a job described in category 237130 of the 2022 North   American Industry Classification System.                (2)  "Commission" means the Texas Workforce Commission.          Sec. 171.722.  DEFINITION: QUALIFYING APPRENTICE. (a) For   purposes of this subchapter, "qualifying apprentice" means an   apprentice employed by a taxable entity:          (1)  in a broadband utility engineering or construction job;   and   (2)  and as part of an apprenticeship program that is:                      (A)  certified as an industry-recognized   apprenticeship program by an entity determined to meet United   States Department of Labor criteria; or                      (B)  registered with the United States Department   of Labor and qualified to receive funding provided through the   commission under Chapter 133, Education Code.          (b)  An individual who otherwise meets the definition of   qualifying apprentice under Subsection (a) may not be considered a   qualifying apprentice of a taxable entity for purposes of this   subchapter:                (1)  beyond the earlier of:                      (A)  the fourth anniversary of the date the   individual was employed by the entity as a qualifying apprentice;   or                      (B)  the conclusion of the initial term of the   apprenticeship program in which the individual is participating;   or                 (2)  if the individual was employed by the entity in   another capacity immediately before being employed by the entity   as a qualifying apprentice.          Sec. 171.723.  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. 171.724.  QUALIFICATION. 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 for at least three months and, in accordance with   criteria adopted by the commission by rule, provides the apprentice   with training and skills development in pole climbing, rigging,   fiber and coax splicing, or other tasks required of an aerial   lineman.          Sec. 171.725.  CERTIFICATE OF ELIGIBILITY. (a) Before   claiming a credit under this subchapter, a taxable entity must   request a certificate of eligibility from the commission stating   that the entity qualifies for a credit under this subchapter by   satisfying the requirements of Section 171.724. The entity must   request the certificate of eligibility in the manner prescribed by   the commission.          (b)  On receipt of a request under Subsection (a), the   commission shall:                (1)  determine whether the taxable entity is eligible   for a credit under this subchapter; and                (2)  if the commission determines that the taxable   entity is eligible for a credit, issue the requested certificate of   eligibility.          Sec. 171.726.  AMOUNT OF CREDIT; LIMITATION. (a) Subject to   Subsections (b) and (c), the amount of the credit a taxable entity   may claim on a report is an amount equal to $5,000 multiplied by the   number of qualifying apprentices employed by the entity 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.          (c)  The total amount of credits that may be awarded under   Subsection (a) in a state fiscal biennium may not exceed $10   million.          Sec. 171.727.  CARRYFORWARD. (a) If a taxable entity is   eligible for a credit that exceeds the limitation under Section   171.726(b), the entity may carry the unused credit forward for not   more than five consecutive reports.          (b)  A carryforward is considered the remaining portion of a   credit that cannot be claimed on a report because of the limitation   under Section 171.726(b).          (c)  Credits, including a carryforward, are considered to be   used in the following order:   (1)  a carryforward under this section; and   (2)  a credit for the period on which the report is   based.          Sec. 171.728.  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)  A taxable entity must apply for the credit in the manner   prescribed by the comptroller and include with the application:                (1)  the certificate of eligibility issued under   Section 171.725; and                (2)  any information requested by the comptroller to   determine the amount of the credit.          (c)  The comptroller shall award a credit to a taxable entity   that submits an application that complies with the provisions of   this section if the entity is eligible for the credit and the   credit is available under Section 171.726(c).          assigned shall jointly submit written notice of the sale or   assignment to the comptroller not later than the 30th day after the   date of the sale or assignment. The notice must include:                (1)  the date on which the credit was originally   established;                (2)  the date of the sale or assignment;                (3  the amount of the credit sold or assigned and the   remaining period during which it may be used;                (4)  the names, addresses, and federal tax   identification numbers of the taxable entity that sold or assigned   the credit or part of the credit and the taxable entity to which the   credit or          Sec. 171.729.  RULES. The comptroller may adopt rules   necessary to implement and administer this subchapter.          Sec. 171.730.  REPORT. (a) Not later than November 1 of   each even-numbered year, the commission 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 tax credits issued under   this subchapter on the employment outcomes and earnings of   qualifying apprentices with respect to whom credits are issued   under this subchapter. The report must include a recommendation   regarding whether the tax credit should be expanded or terminated.          (b)  A taxable entity that requests a certificate of   eligibility under Section 171.725 shall provide, on request of the   commission, information the commission determines is necessary to   prepare the report under this section.          SECTION 2.  Subchapter N-1, Chapter 171, Tax Code, as added   by this Act, applies only to a report originally due on or after   January 1, 2026.          SECTION 3.  An entity may apply for a franchise tax credit   under Subchapter N-1, Chapter 171, Tax Code, as added by this Act,   only in connection with an apprentice first employed on or after   the effective date of this Act.          SECTION 4.  This Act takes effect January 1, 2026.