Texas 2025 - 89th Regular

Texas Senate Bill SB211 Compare Versions

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

Old	New	Differences
1	1	89R1401 SRA-D
2	2	By: West S.B. No. 211
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a franchise tax credit for taxable entities that
10	10	operate an on-site child-care center for use by the entity's
11	11	employees.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Chapter 171, Tax Code, is amended by adding
14	14	Subchapter O-1 to read as follows:
15	15	SUBCHAPTER O-1. TAX CREDIT FOR OPERATION OF ON-SITE CHILD-CARE
16	16	CENTERS
17	17	Sec. 171.781. DEFINITIONS. In this subchapter:
18	18	(1) "Employee" means an individual who performs
19	19	services for an employer for compensation under an oral or written
20	20	contract of hire, whether express or implied. The term does not
21	21	include an independent contractor.
22	22	(2) "Licensed child-care center" means a child-care
23	23	center licensed, certified, or registered by the Department of
24	24	Family and Protective Services to provide assessment, care,
25	25	training, education, custody, treatment, or supervision for a child
26	26	who is not related by blood, marriage, or adoption to the owner or
27	27	operator of the center, for all or part of the 24-hour day, whether
28	28	or not the center is operated for profit or charges for the services
29	29	it offers.
30	30	Sec. 171.782. ENTITLEMENT TO CREDIT. A taxable entity is
31	31	entitled to a credit in the amount and under the conditions provided
32	32	by this subchapter against the tax imposed under this chapter.
33	33	Sec. 171.783. QUALIFICATION. A taxable entity qualifies
34	34	for a credit under this subchapter if the taxable entity
35	35	establishes and operates a licensed child-care center that is:
36	36	(1) available exclusively to the employees of the
37	37	entity for the purpose of providing care for the employees'
38	38	children and dependents; and
39	39	(2) located at or immediately adjacent to the site at
40	40	which the employees using the center work.
41	41	Sec. 171.784. AMOUNT OF CREDIT; LIMITATIONS. (a) Subject
42	42	to Subsection (c), the amount of the credit a taxable entity may
43	43	claim on a report is equal to:
44	44	(1) 30 percent of the entity's net cost to operate the
45	45	licensed child-care center during the period on which the report is
46	46	based; or
47	47	(2) if the licensed child-care center is certified as
48	48	a provider in the Texas Rising Star Program, 35 percent of the
49	49	entity's net cost to operate the licensed child-care center during
50	50	the period on which the report is based.
51	51	(b) Notwithstanding Subsection (a) and subject to
52	52	Subsection (c), the amount of the credit a taxable entity may claim
53	53	on the first report due after the date the entity first opens the
54	54	licensed child-care center is equal to 20 percent of the total
55	55	amount spent by the entity to construct the center and prepare the
56	56	center for initial operation.
57	57	(c) The total amount of credit claimed by a taxable entity
58	58	on a report may not exceed the lesser of:
59	59	(1) the amount of franchise tax due for the report
60	60	after the application of any other applicable credits; or
61	61	(2) the amount from the following list that applies to
62	62	the report:
63	63	(A) $100,000 if the total amount of franchise tax
64	64	due for the report is $3 million or less after applying all other
65	65	applicable credits;
66	66	(B) $250,000 if the total amount of franchise tax
67	67	due for the report is more than $3 million but less than $10 million
68	68	after applying all other applicable credits; or
69	69	(C) $500,000 if the total amount of franchise tax
70	70	due for the report is $10 million or more after applying all other
71	71	applicable credits.
72	72	Sec. 171.785. APPLICATION FOR CREDIT. (a) A taxable entity
73	73	must apply for a credit under this subchapter on or with the report
74	74	for the period for which the credit is claimed.
75	75	(b) A taxable entity must apply for the credit in the manner
76	76	prescribed by the comptroller and include with the application any
77	77	information requested by the comptroller to determine whether the
78	78	entity is eligible for the credit under this subchapter.
79	79	Sec. 171.786. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable
80	80	entity may not convey, assign, or transfer a credit under this
81	81	subchapter to another entity unless substantially all of the assets
82	82	of the taxable entity are conveyed, assigned, or transferred in the
83	83	same transaction.
84	84	Sec. 171.787. RULES. The comptroller shall adopt rules
85	85	necessary to implement and administer this subchapter.
86	86	SECTION 2. This Act applies only to a report originally due
87	87	on or after the effective date of this Act.
88	88	SECTION 3. This Act takes effect January 1, 2026.