Guillen Bill Refunds Up To $2,500 Per Apprentice

The text as introduced · 752 words

90R3394 MXM-D

By: Guillen
H.B. No. 230

A BILL TO BE ENTITLED

AN ACT

relating to sales and use tax refunds for certain persons who employ

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 151.4293 to read as follows:

Sec. 151.4293. TAX REFUNDS FOR CERTAIN PERSONS WHO EMPLOY

APPRENTICES. (a) In this section:

(1) "Executive director" means the executive director

of the Texas Workforce Commission.

(2) "Qualified apprenticeship" means 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

Texas Workforce Commission under Chapter 133, Education Code.

(b) 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 is certified by the

executive director under Subsection (f) and employs at least one

apprentice in a qualified apprenticeship position for at least

seven months during the calendar year. A person is not considered

to be employed in a qualified apprenticeship position for purposes

of this section:

(1) after the earlier of:

(A) the fourth anniversary of employment in the

position; or

(B) the conclusion of the term of the

apprenticeship position; or

(2) if the person was employed in another position by

the employer immediately before beginning employment in the

apprenticeship position.

(c) Subject to Subsections (d) and (e), the amount of the

refund for a calendar year in connection with each apprentice

described by Subsection (b) is $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 each apprentice described by Subsection (b), not

to exceed the maximum number of apprentices provided by Subsection

(e); or

(2) the amount of sales and use taxes paid by the

person during the calendar year.

(e) The maximum number of apprentices in connection with

whom a person may receive a refund in a calendar year is:

(1) one; or

(2) not more than six if at least half of the

apprentices employed are:

(A) foster children who have transitioned or are

transitioning to independent living, as described in Section

264.121, Family Code;

(B) military veterans, as defined by Section

55.001, Occupations Code;

(C) military spouses, as defined by Section

55.001, Occupations Code; or

(D) women.

(f) A person may not apply for a refund under this section

unless the executive director certifies that the person is able to

employ apprentices in qualified apprenticeships. A person must

apply to the executive director to obtain certification. The

executive director shall create an application form for the

certification.

(g) The executive director may certify not more than 100

persons under Subsection (f) at any time. If the number of eligible

applicants exceeds the limit provided by this subsection, the

executive director shall select applicants for certification

according to rules adopted under Subsection (h).

(h) The executive director shall adopt rules that establish

merit-based criteria for selecting persons to certify from among

those who apply. The rules must require that the executive director

give preference to applicants who:

(1) offer qualified apprenticeships in areas of this

state that are not designated as metropolitan statistical areas by

the United States Office of Management and Budget; and

(2) provide training and skills development in

emerging or developing occupational fields.

(i) The executive director shall issue a certificate to each

person certified under Subsection (f). The certificate must

confirm that the person is eligible to apply for a refund under this

section.

(j) A person must apply to the comptroller for a refund

under this section. The person must include with the application

the certificate issued to the person under Subsection (i) and any

other information the comptroller requires.

SECTION 2. A person may apply for a refund under Section

151.4293, Tax Code, as added by this Act, only in connection with

apprentices first employed on or after January 1, 2027.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2027.