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(a) The governing body of a school district by resolution may authorize a corporation or other business entity to permit a qualified individual employed by the business entity to perform teaching services in a high school or a junior high school for the school district in lieu of paying taxes imposed by the district on property owned by the business entity.
(b) The governing body of the school district shall determine:
(1) the number of business entities that will be eligible for a tax credit under this section;
(2) the courses that an employee of the business entity may teach for the district under this section; and
(3) the amount of the tax credit that a business entity may earn.
(c) The governing body shall require that each business entity permitted to provide an employee to perform teaching services for the district under this section execute a contract with the district. The contract must be executed before the delinquency date and must:
(A) the course or courses that the employee will teach for the district;
(B) the high school or junior high school of the district where the employee will perform the teaching services;
(C) the semester in which the employee will perform the teaching services; and
(D) the amount of the tax credit that the business entity will receive on successful completion of the contractual obligations of the business entity and its employee; and
(2) set out or describe the provisions of Subsections (d)-(h).
(d) For each course taught for the entire school semester by an employee of the business entity for the school district, the business entity is entitled to a maximum credit of $500 against the taxes imposed, except that if the employee teaches a course for which a student receives a full year's credit for one semester, the business entity is entitled to a maximum credit of $1,000 for each such course taught for one semester by the employee.
(e) The district shall terminate the contract if:
(1) the employee fails to perform the teaching services; or
(2) the district determines that the teaching services of the employee of the business entity are unsatisfactory.
(f) If the contract is terminated under Subsection (e), on the termination date the district may grant the business entity a portion of the tax credit based on the portion of the teaching services performed.
(g) While performing teaching services for a school district, the employee of the business entity:
(1) is not an employee of the district; and
(2) is not entitled to any benefit, including workers' compensation coverage, that the district provides to an employee of the district.
(h) An individual may not perform teaching services for which a business entity receives a tax credit under this section if the individual enters into a contract with the same school district to provide teaching services for a tax credit for the same tax year under Section 31.036.
(i) An individual is qualified to perform teaching services for a school district under this section only if the individual holds a baccalaureate or more advanced degree in a field related to the course to be taught and:
(1) is certified as a classroom teacher under Subchapter B, Chapter 21, Education Code; 1 or
(2) obtains a school district teaching permit under Section 21.055, Education Code.
Cite this article: FindLaw.com - Texas Tax Code - TAX § 31.037. Performance of Teaching Services by Employee in Lieu of Payment of School Taxes on Property of Business Entity - last updated April 14, 2021 | https://codes.findlaw.com/tx/tax-code/tax-sect-31-037.html
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