Bill > SB211

This bill creates a new franchise tax credit for taxable entities that establish and operate an on-site, licensed child-care center exclusively for their employees' children and dependents. The credit allows businesses to claim either 30% or 35% of the net operational costs of the child-care center (with the higher percentage applied if the center is certified in the Texas Rising Star Program), with an additional one-time credit of 20% for initial construction and preparation costs. The credit is subject to caps based on the total franchise tax due, ranging from $100,000 for smaller businesses to $500,000 for larger entities. To qualify, the child-care center must be located at or immediately adjacent to the workplace and serve only the company's employees. Businesses must apply for the credit with their tax report and cannot transfer the credit except in cases of substantial asset transfer. The bill defines an employee as a compensated worker under an employment contract, excluding independent contractors, and requires the child-care center to be licensed by the Department of Family and Protective Services. The tax credit will become effective on January 1, 2026, and will apply to tax reports due on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB211