Relating to a franchise tax credit for taxable entities that employ certain apprentices in broadband utility engineering or construction jobs.

HB 3605 creates a franchise tax credit for Texas businesses that hire apprentices in broadband utility engineering or construction jobs. To qualify, businesses must employ at least one apprentice for three months in a certified apprenticeship program, provide specific training in skills like pole climbing or fiber splicing, and obtain a certificate of eligibility from the Texas Workforce Commission. The credit directly benefits taxable entities (businesses) in the broadband sector by reducing their franchise tax liability. It applies to apprentices working in roles classified under 2022 NAICS code 237130, requiring programs to meet U.S. Department of Labor standards or be registered under Texas Education Code Chapter 133. The bill is currently pending in committee after being favorably reported with a committee substitute.