85R1645 ADM-D     By: Miles S.B. No. 518       A BILL TO BE ENTITLED   AN ACT   relating to a franchise tax credit for entities that employ certain   students in certain paid internship or similar programs.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 171, Tax Code, is amended by adding   Subchapter R to read as follows:   SUBCHAPTER R. TAX CREDIT FOR PAID INTERNSHIPS GIVEN TO CERTAIN HIGH   SCHOOL STUDENTS          Sec. 171.871.  DEFINITIONS. In this subchapter:                (1)  "Commission" means the Texas Workforce   Commission.                (2)  "Eligible internship program" means a paid   internship or similar program that:                      (A)  meets the requirements of rules adopted by   the commission under Section 171.875; and                      (B)  is part of the curriculum requirements for an   endorsement under Section 28.025(c-1), Education Code.                (3)  "Eligible student" means a student enrolled in a   public high school who has reached the minimum age required under   Chapter 51, Labor Code, to legally work in the eligible internship   program.          Sec. 171.872.  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. 171.873.  QUALIFICATION FOR CREDIT. A taxable entity   qualifies for a credit under this subchapter for each eligible   student who completes an eligible internship program offered by the   taxable entity.          Sec. 171.874.  AMOUNT OF CREDIT; LIMITATIONS. (a)  The   amount of the credit is $1,000 for each eligible student who   completes an eligible internship program offered by the taxable   entity.          (b)  A taxable entity may claim the credit only for an   eligible internship program offered by the taxable entity that is   located or based in this state.          (c)  A taxable entity may not claim the credit in connection   with an eligible student if an owner of the taxable entity is   related to the eligible student within the third degree of   consanguinity as determined under Subchapter B, Chapter 573,   Government Code.          Sec. 171.875.  COMMISSION RULES. The commission, after   consulting with the commissioner of education, shall adopt rules   providing the requirements that an internship or similar program   must meet to be considered an eligible internship program under   this subchapter.          Sec. 171.876.  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. 171.877.  PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A   taxable entity may claim a credit under this subchapter against the   tax owed for a privilege period only in connection with an eligible   student who completes an eligible internship program during the   privilege period.          SECTION 2.  A taxable entity may claim the credit under   Subchapter R, Chapter 171, Tax Code, as added by this Act, only in   connection with an eligible student who completes an eligible   internship program on or after the effective date of this Act and   only on a franchise tax report due under Chapter 171, Tax Code, on   or after January 1, 2018.          SECTION 3.  This Act takes effect January 1, 2018.