S.B. No. 1524

	AN ACT
	relating to a sales and use tax refund pilot program 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 151.4292 to read as follows:
	Sec. 151.4292.  TAX REFUND PILOT PROGRAM 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.
	(k)  Not later than September 1, 2024, the executive director
	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 pilot program on the employment outcomes and earnings of
	apprentices with respect to whom refunds are granted under the
	pilot program under this section.  The report must include a
	recommendation regarding whether the pilot program should be
	continued, expanded, or terminated.
	(l)  A person who applies for a refund under this section
	shall provide to the executive director information the executive
	director requests to prepare the report described by Subsection
	(k).
	(m)  This section expires December 31, 2026.
	SECTION 2.  A person may apply for a refund under Section
	151.4292, Tax Code, as added by this Act, only in connection with
	apprentices first employed on or after the effective date of this
	Act.
	SECTION 3.  The Texas Workforce Commission and the
	comptroller of public accounts are required to implement this Act
	only if the legislature appropriates money specifically for that
	purpose.  If the legislature does not appropriate money
	specifically for that purpose, the commission and the comptroller
	may, but are not required to, implement this Act using other
	appropriations available for the purpose.
	SECTION 4.  This Act takes effect January 1, 2022.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1524 passed the Senate on
	April 21, 2021, by the following vote:  Yeas 27, Nays 4.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1524 passed the House on
	May 24, 2021, by the following vote:  Yeas 103, Nays 38, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor