Texas House Bill HB3070

Texas 2025 - 89th Regular

• Filed: 2/20/25

Caption

Relating to a franchise tax credit for opening an early learning and child-care center in certain affordable housing developments.

Impact

If enacted, HB3070 will amend the Tax Code of Texas by adding a new subchapter focused specifically on tax credits for early learning and child-care centers in affordable housing projects. This tax credit is positioned as a compelling incentive for businesses, including independent school districts and charter schools, to establish such facilities, thus fostering an environment where early education is more accessible to families in need. By encouraging the development of child-care centers, the bill may have a positive impact on community engagement and workforce readiness among the younger population.

Summary

House Bill 3070 aims to promote the establishment of early learning and child-care centers within certain affordable housing developments through the provision of a franchise tax credit. The bill is designed to support taxable entities that open these centers, providing financial relief in the form of a credit equal to 50 percent of the franchise tax due after the application of all other tax credits. This initiative is likely intended to increase access to early childhood education and support child development, especially among families residing in affordable housing.

Contention

The bill's focus on tax credits for early learning centers may generate discussions around the effectiveness and sustainability of funding mechanisms for education and child-care services. Supporters may argue that providing these tax credits is a necessary step to stimulate the growth of child-care facilities in underserved areas, addressing both educational and economic needs. However, critics could raise concerns about the allocation of state resources, questioning whether the tax credits will yield enough benefits to justify the potential loss in state tax revenue. Such debates may highlight the broader challenges faced in funding educational initiatives and ensuring equitable access to quality child-care services across Texas.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 171. Franchise Tax
  • Section: New Section