PREFILED NOV 19 2019
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REFERENCE TITLE: student apprenticeship program; tax credits |
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State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session 2020
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HB 2002 |
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Introduced by Representatives Fillmore: Carroll, Peten
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AN ACT
amending Title 15, chapter 2, article 2, Arizona Revised Statutes, by adding section 15-249.16; amending section 43‑222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43‑1075; amending title 43, chapter 11, article 6, Arizona Revised Statutes, by adding section 43‑1163; relating to the department of education.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 2, article 2, Arizona Revised Statutes, is amended by adding section 15-249.16, to read:
15-249.16. Arizona student apprenticeship program; program termination; definitions
A. The Arizona student apprenticeship program is established within the department of education to provide job training and economic opportunity to high school students in this state. The department shall develop application procedures, selection criteria and completion requirements. the Arizona student apprenticeship program is separate and apart from the United States department of labor‑approved apprenticeship program.
B. Any employer in this state may apply to participate in the program by submitting an application to the department. An employer that participates in the program shall do all of the following:
1. Provide each participant employee with job training.
2. Provide flexible scheduling to each participant employee so that the participant employee may attend classes.
3. Open a separate interest-bearing account on behalf of each participant employee.
4. Deposit the portion of each participant employee's wages selected by the participant employee pursuant to subsection E of this section in the account opened pursuant to paragraph 3 of this subsection.
5. Each time the employer deposits a portion of a participant employee's wages pursuant to paragraph 4 of this subsection, deposit an equivalent amount of monies in the account opened pursuant to paragraph 3 of this subsection.
6. If a participant employee successfully completes the program requirements prescribed by the department pursuant to subsection A of this section, disburse to the participant employee the entire amount of monies in the account opened pursuant to paragraph 3 of this subsection.
7. If a participant employee does not successfully complete the program requirements prescribed by the department pursuant to subsection A of this section, disburse to the participant employee from the account opened pursuant to paragraph 3 of this subsection an amount of monies that is equivalent to the sum of the monies deposited pursuant to paragraph 4 of this subsection. The employer may retain the monies deposited pursuant to paragraph 5 of this subsection and shall transmit any interest on those monies to the state treasurer for deposit in the state general fund.
C. The department shall prepare a list that includes all employers that have been accepted to participate in the program and post this list on the department's website.
D. A student may participate in the program if the student meets all of the following requirements:
1. Is enrolled in high school at a public school in this state.
2. Applies for the program by submitting an application in a form prescribed by the department to the public school at which the student is enrolled.
3. Submits proof with the student's application that the student is projected to complete the high school graduation requirements pursuant to section 15‑701.01 by the end of grade twelve. If participation in the program will interfere with a student's ability to complete the high school graduation requirements pursuant to section 15‑701.01 by the end of grade twelve, the public school shall deny the student's application.
4. Submits proof that the student has received an offer of employment from an employer on the list prepared pursuant to subsection C of this section.
E. On being hired, a participant employee shall designate a percentage of at least ten percent of the participant employee's wages to be deposited in the account opened by the employer on behalf of the participant employee pursuant to subsection B, paragraph 3 of this section.
F. An employer that participates in the program is allowed a tax credit as prescribed by section 43‑1075 or 43‑1163 for each participant employee who successfully completes the program requirements prescribed by the department of education pursuant to subsection A of this section. The department of education shall issue a certificate to the employer to provide to the department of revenue to verify the employer's participation in the program and the participant employee's completion of the program.
G. The program established by this section ends on July 1, 2030 pursuant to section 41‑3102.
H. For the purposes of this section:
1. "Department" means the department of education.
2. "Participant employee" means an employee who participates in the program.
3. "Program" means the Arizona student apprenticeship program established by this section.
Sec. 2. Section 43-222, Arizona Revised Statutes, is amended to read:
43-222. Income tax credit review schedule
The joint legislative income tax credit review committee shall review the following income tax credits:
1. For years ending in 0 and 5, sections 43‑1079.01, 43‑1087, 43‑1088, 43‑1089.04, 43‑1167.01 and 43‑1175.
2. For years ending in 1 and 6, sections 43‑1072.02, 43‑1074.02, 43‑1075, 43‑1083, 43‑1083.02, 43‑1163, 43‑1164.03 and 43‑1183.
3. For years ending in 2 and 7, sections 43‑1073, 43‑1080, 43‑1085, 43‑1086, 43‑1089, 43‑1089.01, 43‑1089.02, 43‑1089.03, 43‑1164, 43‑1169 and 43‑1181.
4. For years ending in 3 and 8, sections 43‑1074.01, 43‑1081, 43‑1168, 43‑1170 and 43‑1178.
5. For years ending in 4 and 9, sections 43‑1073.01, 43‑1076, 43‑1081.01, 43-1083.03, 43‑1084, 43‑1162, 43-1164.04, 43‑1164.05, 43‑1170.01 and 43‑1184 and, beginning in 2019, sections 43‑1083.03 and 43‑1164.04.
Sec. 3. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1075, to read:
43-1075. Student apprenticeship tax credit
A. For taxable years beginning from and after December 31, 2020, a credit is allowed against the taxes imposed by this title for taxpayers who are employer participants in the Arizona student apprenticeship program established by section 15‑249.16 for each participant employee who successfully completes the program during that taxable year.
B. The amount of the credit is $______ per participant employee, as defined in section 15‑249.16, who successfully completed the Arizona student apprenticeship program established by section 15-249.16 during the taxable year.
C. To claim the credit under this section, the taxpayer must submit the certificate provided by the department of education under section 15‑249.16, subsection F to the department of revenue with the taxpayer's income tax return. A credit under this section is not allowed until the taxpayer provides the required certificate.
D. If the amount of the credit for a taxable year exceeds the amount of taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry forward the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
E. Co‑owners of a business, including partners in a partnership and shareholders of an S corporation as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credit allowed all owners may not exceed the amount that would have been allowed a sole owner.
Sec. 4. Title 43, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 43-1163, to read:
43-1163. Student apprenticeship tax credit
A. For taxable years beginning from and after December 31, 2020, a credit is allowed against the taxes imposed by this title for taxpayers that are employer participants in the Arizona student apprenticeship program established by section 15‑249.16 for each participant employee who successfully completes the program during that taxable year.
B. The amount of the credit is $______ per participant employee, as defined in section 15‑249.16, who successfully completed the Arizona student apprenticeship program established by section 15-249.16 during the taxable year.
C. To claim the credit under this section, the taxpayer must submit the certificate provided by the department of education under section 15‑249.16, subsection F to the department of revenue with the taxpayer's income tax return. A credit under this section is not allowed until the taxpayer provides the required certificate.
D. If the amount of the credit for a taxable year exceeds the amount of taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry forward the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
E. Co‑owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credit allowed all owners may not exceed the amount that would have been allowed a sole owner.
Sec. 5. Purpose
Pursuant to section 43‑223, Arizona Revised Statutes, the legislature enacts sections 43‑1075 and 43‑1163, Arizona Revised Statutes, as added by this act, to support employers that provide job training and economic opportunities to high school students in this state.