88R11063 SRA-F
By: Dutton H.B. No. 3542
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for opening an early learning and
child-care center in certain affordable housing developments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter N to read as follows:
SUBCHAPTER N. TAX CREDIT FOR EARLY LEARNING AND CHILD-CARE CENTERS
IN CERTAIN AFFORDABLE HOUSING DEVELOPMENTS
Sec. 171.701. DEFINITIONS. In this subchapter:
(1) "Development" has the meaning assigned by Section
2306.6702, Government Code.
(2) "Early learning and child-care center" means a
facility operated by an independent school district or charter
school, or a facility licensed by the Health and Human Services
Commission or by a nationally recognized accrediting organization,
that provides on-site early childhood education to children aged
zero to five years old.
Sec. 171.702. ELIGIBILITY FOR CREDIT. A taxable entity
that opens an early learning and child-care center in a development
is eligible for a credit against the tax imposed under this chapter
in the amount and under the conditions provided by this subchapter.
Sec. 171.703. AMOUNT OF CREDIT. The amount of a taxable
entity's credit for a report is equal to 50 percent of the franchise
tax due for the report after applying all other credits.
Sec. 171.704. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the report
covering the period in which the early learning and child-care
center was opened.
(b) The comptroller shall prescribe the form and method of
applying for a credit under this section. A taxable entity must use
this method in applying for the credit under this subchapter.
Sec. 171.705. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable
entity may not convey, assign, or transfer the credit allowed under
this subchapter to another taxable entity unless substantially all
of the assets of the taxable entity are conveyed, assigned, or
transferred in the same transaction.
Sec. 171.706. RULES. The comptroller may adopt rules and
procedures necessary to implement and administer this subchapter.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2024.