| 1 | 1 | | 88R11063 SRA-F |
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| 2 | 2 | | By: Dutton H.B. No. 3542 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a franchise tax credit for opening an early learning and |
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| 8 | 8 | | child-care center in certain affordable housing developments. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 11 | 11 | | Subchapter N to read as follows: |
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| 12 | 12 | | SUBCHAPTER N. TAX CREDIT FOR EARLY LEARNING AND CHILD-CARE CENTERS |
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| 13 | 13 | | IN CERTAIN AFFORDABLE HOUSING DEVELOPMENTS |
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| 14 | 14 | | Sec. 171.701. DEFINITIONS. In this subchapter: |
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| 15 | 15 | | (1) "Development" has the meaning assigned by Section |
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| 16 | 16 | | 2306.6702, Government Code. |
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| 17 | 17 | | (2) "Early learning and child-care center" means a |
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| 18 | 18 | | facility operated by an independent school district or charter |
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| 19 | 19 | | school, or a facility licensed by the Health and Human Services |
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| 20 | 20 | | Commission or by a nationally recognized accrediting organization, |
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| 21 | 21 | | that provides on-site early childhood education to children aged |
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| 22 | 22 | | zero to five years old. |
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| 23 | 23 | | Sec. 171.702. ELIGIBILITY FOR CREDIT. A taxable entity |
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| 24 | 24 | | that opens an early learning and child-care center in a development |
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| 25 | 25 | | is eligible for a credit against the tax imposed under this chapter |
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| 26 | 26 | | in the amount and under the conditions provided by this subchapter. |
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| 27 | 27 | | Sec. 171.703. AMOUNT OF CREDIT. The amount of a taxable |
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| 28 | 28 | | entity's credit for a report is equal to 50 percent of the franchise |
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| 29 | 29 | | tax due for the report after applying all other credits. |
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| 30 | 30 | | Sec. 171.704. APPLICATION FOR CREDIT. (a) A taxable entity |
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| 31 | 31 | | must apply for a credit under this subchapter on or with the report |
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| 32 | 32 | | covering the period in which the early learning and child-care |
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| 33 | 33 | | center was opened. |
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| 34 | 34 | | (b) The comptroller shall prescribe the form and method of |
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| 35 | 35 | | applying for a credit under this section. A taxable entity must use |
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| 36 | 36 | | this method in applying for the credit under this subchapter. |
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| 37 | 37 | | Sec. 171.705. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable |
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| 38 | 38 | | entity may not convey, assign, or transfer the credit allowed under |
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| 39 | 39 | | this subchapter to another taxable entity unless substantially all |
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| 40 | 40 | | of the assets of the taxable entity are conveyed, assigned, or |
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| 41 | 41 | | transferred in the same transaction. |
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| 42 | 42 | | Sec. 171.706. RULES. The comptroller may adopt rules and |
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| 43 | 43 | | procedures necessary to implement and administer this subchapter. |
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| 44 | 44 | | SECTION 2. This Act applies only to a report originally due |
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| 45 | 45 | | on or after the effective date of this Act. |
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| 46 | 46 | | SECTION 3. This Act takes effect January 1, 2024. |
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