Bill > HB3605

This bill creates a new franchise tax credit program to incentivize businesses in Texas to hire and train apprentices specifically in broadband utility engineering and construction jobs. The credit allows taxable entities to claim $5,000 per qualifying apprentice, with a maximum of $10 million in total credits awarded per state fiscal biennium. To be eligible, a business must employ at least one apprentice for at least three months in a certified or registered apprenticeship program, providing training in skills like pole climbing, rigging, and fiber splicing. Apprentices can only be counted for a maximum of four years or until their initial apprenticeship program concludes, and they cannot have been previously employed by the same entity. Businesses must first obtain a certificate of eligibility from the Texas Workforce Commission and then apply for the credit with the comptroller. Importantly, these credits can be sold or assigned to other taxable entities, and any unused credits can be carried forward for up to five consecutive reporting periods. The Texas Workforce Commission is required to submit a biennial report evaluating the program's impact on employment outcomes, with a recommendation about whether the tax credit should be expanded or terminated. The program will take effect on January 1, 2026, and will apply only to reports due on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3605