On June 7, 2021, Texas Governor Greg Abbott signed Senate Bill 1524, establishing a refundable tax credit pilot program for certain businesses who employ apprentices.
What It Does
The refundable tax credit program will be administered by Texas Workforce Commission (TWC) to encourage the employment of certain apprentices. Eligible businesses can receive a refund of the lesser of the following:
- $2,500 per apprentice
- Sales and use taxes paid by the employer during the calendar year
An employer may only claim a refund in a calendar year for one apprentice. However, if at least half of the apprentices are foster children, military veterans and spouses, or women, they can claim up to six.
Refunds for this program are issued from the Comptroller’s office.
Issues to Consider
Preapproval from the executive director of the TWC is required to receive a refund. The TWC is currently drafting the form to obtain this certification.
The executive director is authorized to approve up to 100 certifications at any time. If the number of eligible applicants exceeds the maximum number of allowable certifications, the executive director will establish merit-based criteria for determining which applicants to certify.
This law goes into effect January 1, 2022. If it isn’t renewed, it’s set to expire December 31, 2026.
We’re Here to Help
To learn more about whether you qualify, how to become certified and what your potential benefit might be contact your Moss Adams professional.