Relating to employer incentive payments for child care for employees, including creating an employer child-care contribution partnership program and a franchise tax credit for taxable entities that make certain employer child-care contributions; authorizing a civil penalty.
Impact
The bill introduces significant amendments to the Labor Code and the Texas Tax Code, establishing a structured financial mechanism to not only support employees but also incentivize employers to prioritize child care as a workplace benefit. By providing a tax credit for employer contributions, the legislation aims to alleviate the financial burdens faced by working families in securing proper child care, potentially enhancing employee retention and satisfaction. However, it also allocates up to $25 million per state fiscal biennium for these credits, indicating a substantial budgetary commitment from the state to support the initiative.
Summary
SB2164 proposes the establishment of an Employer Child-Care Contribution Partnership Program aimed at reinforcing child care accessibility for employees in Texas. The bill allows eligible taxable entities to make contributions towards their employees' child-care costs and offers a corresponding state match for these employer contributions. It mandates that participating employers contribute at least $1,200 per eligible employee annually towards child-care costs. This program is designed to enhance workforce stability and assist families in affording high-quality child care while fostering early childhood development in the state.
Contention
While the bill is poised to address critical concerns regarding child care affordability, certain points of contention may arise around the implementation of the program. Stakeholders may debate the eligibility criteria and distribution of state match funds, as well as the overall efficacy of the program in genuinely improving access to child care services. Furthermore, ensuring that contributions are made equitably across employer sizes—particularly prioritizing small businesses—can also be a focal point of discussions as this may influence local economies and workforce dynamics.
Relating to the creation of the employer child-care contribution partnership program administered by the Texas Workforce Commission; authorizing a civil penalty.
Relating to special education in public schools, including the special education allotment under the Foundation School Program, an education savings account program for certain children with disabilities, and a grant program to reimburse public schools for the cost of certain employer contributions for retirees of the Teacher Retirement System of Texas employed to teach special education.
Relating to special education in public schools, including the special education allotment under the Foundation School Program, an education savings account program for certain children with disabilities, and a grant program to reimburse public schools for the cost of certain employer contributions for retirees of the Teacher Retirement System of Texas employed to teach or provide services related to special education.
Relating to a franchise tax credit for taxable entities that make certain employer child-care contributions and a study on access to and availability of child care in this state.
Relating to the creation of the employer child-care contribution partnership program administered by the Texas Workforce Commission; authorizing a civil penalty.
Relating to the establishment of the Family Educational Relief Program and an insurance premium tax credit for contributions made for purposes of that program.