Texas 2025 - 89th Regular

Texas House Bill HB5273 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R1402 SRA-D
2	2	By: González of El Paso H.B. No. 5273
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a franchise tax credit for certain child-care centers
10	10	that increase their capacity to care for children.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. It is the intent of the legislature that the
13	13	franchise tax credit proposed by this Act will incentivize
14	14	large-scale child-care providers to create additional capacity at
15	15	the providers' locations and therefore significantly increase the
16	16	availability of child care in this state.
17	17	SECTION 2. Chapter 171, Tax Code, is amended by adding
18	18	Subchapter P-1 to read as follows:
19	19	SUBCHAPTER P-1. TAX CREDIT FOR CHILD-CARE CENTERS THAT INCREASE
20	20	CAPACITY
21	21	Sec. 171.821. DEFINITION. In this subchapter, "licensed
22	22	child-care center" means a child-care center licensed, certified,
23	23	or registered by the Department of Family and Protective Services
24	24	to provide assessment, care, training, education, custody,
25	25	treatment, or supervision for a child who is not related by blood,
26	26	marriage, or adoption to the owner or operator of the center, for
27	27	all or part of the 24-hour day, whether or not the center is
28	28	operated for profit or charges for the services it offers.
29	29	Sec. 171.822. ENTITLEMENT TO CREDIT. A taxable entity is
30	30	entitled to a credit in the amount and under the conditions provided
31	31	by this subchapter against the tax imposed under this chapter.
32	32	Sec. 171.823. QUALIFICATION. A taxable entity qualifies
33	33	for a credit under this subchapter if the taxable entity operates
34	34	one or more licensed child-care centers, each of which is certified
35	35	as a provider in the Texas Rising Star Program.
36	36	Sec. 171.824. AMOUNT OF CREDIT; LIMITATIONS. (a) This
37	37	subsection applies to a taxable entity other than a taxable entity
38	38	described by Subsection (b). Subject to Subsections (c) and (d),
39	39	the amount of the credit a taxable entity to which this subsection
40	40	applies may claim on a report for each licensed child-care center
41	41	location operated by the entity is equal to:
42	42	(1) if the capacity of the licensed child-care center
43	43	is increased 25 percent or more but less than 50 percent during the
44	44	period on which the report is based, 50 percent of the additional
45	45	salary associated with the increase in the capacity of the licensed
46	46	child-care center paid by the entity during the period on which the
47	47	report is based;
48	48	(2) if the capacity of the licensed child-care center
49	49	is increased by 50 percent or more but less than 75 percent during
50	50	the period on which the report is based, 75 percent of the
51	51	additional salary associated with the increase in the capacity of
52	52	the licensed child-care center paid by the entity during the period
53	53	on which the report is based; or
54	54	(3) if the capacity of the licensed child-care center
55	55	is increased by 75 percent or more during the period on which the
56	56	report is based, 100 percent of the additional salary associated
57	57	with the increase in the capacity of the licensed child-care center
58	58	paid by the entity during the period on which the report is based.
59	59	(b) This subsection applies only to a taxable entity that is
60	60	a member of an affiliated group that files a combined report under
61	61	Section 171.1014. Subject to Subsections (c) and (d), the amount of
62	62	the credit a taxable entity to which this subsection applies may
63	63	claim on a report is equal to:
64	64	(1) if the capacity of at least 50 percent of the
65	65	licensed child-care center locations operated by all members of the
66	66	taxable entity's combined group is increased by 25 percent or more
67	67	but less than 50 percent during the period on which the report is
68	68	based, 50 percent of the additional salary associated with the
69	69	increase in capacity at those locations paid during the period on
70	70	which the report is based;
71	71	(2) if the capacity of at least 50 percent of the
72	72	licensed child-care center locations operated by all members of the
73	73	taxable entity's combined group is increased by 50 percent or more
74	74	but less than 75 percent during the period on which the report is
75	75	based, 75 percent of the additional salary associated with the
76	76	increase in capacity at those locations paid during the period on
77	77	which the report is based; or
78	78	(3) if the capacity of at least 50 percent of the
79	79	licensed child-care center locations operated by all members of the
80	80	taxable entity's combined group is increased by 75 percent or more
81	81	during the period on which the report is based, 100 percent of the
82	82	additional salary associated with the increase in capacity at those
83	83	locations paid during the period on which the report is based.
84	84	(c) A taxable entity may continue to claim a credit in the
85	85	amount the entity claims on the first report on which the entity
86	86	claims a credit under this subchapter on the two reports due
87	87	subsequent to that first report if the entity maintains the
88	88	increase in child-care capacity that forms the basis of the credit
89	89	claimed on the first report during the period covered by each of the
90	90	two subsequent reports.
91	91	(d) The total amount of credit claimed by a taxable entity
92	92	on a report may not exceed the amount of franchise tax due for the
93	93	report after the application of any other applicable credits.
94	94	Sec. 171.825. APPLICATION FOR CREDIT. (a) A taxable entity
95	95	must apply for a credit under this subchapter on or with the report
96	96	for the period for which the credit is claimed.
97	97	(b) A taxable entity must apply for the credit in the manner
98	98	prescribed by the comptroller and include with the application any
99	99	information requested by the comptroller to determine whether the
100	100	entity is eligible for the credit under this subchapter.
101	101	Sec. 171.826. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable
102	102	entity may not convey, assign, or transfer a credit under this
103	103	subchapter to another entity unless substantially all of the assets
104	104	of the taxable entity are conveyed, assigned, or transferred in the
105	105	same transaction.
106	106	Sec. 171.827. RULES. The comptroller shall adopt rules
107	107	necessary to implement and administer this subchapter.
108	108	SECTION 3. This Act applies only to a report originally due
109	109	on or after the effective date of this Act.
110	110	SECTION 4. This Act takes effect January 1, 2026.