Texas HB5272 provides a franchise tax credit for entities operating on-site child-care centers for employees.

HB5272 amends the Texas Tax Code to introduce a franchise tax credit for taxable entities that operate a licensed child-care center exclusively for their employees. The credit is available for centers located at or adjacent to the employees' work site. The credit amount is either 30% of the net operating cost or 35% if certified by the Texas Rising Star Program. The credit is subject to limits based on the franchise tax due and cannot be transferred to another entity. The comptroller will implement rules for this credit, which takes effect January 1, 2026.

Texas HB5272 provides a franchise tax credit for entities operating on-site child-care centers for employees.

HB5272 amends the Texas Tax Code to introduce a franchise tax credit for taxable entities that operate a licensed child-care center exclusively for their employees. The credit is available for centers located at or adjacent to the employees' work site. The credit amount is either 30% of the net operating cost or 35% if certified by the Texas Rising Star Program. The credit is subject to limits based on the franchise tax due and cannot be transferred to another entity. The comptroller will implement rules for this credit, which takes effect January 1, 2026.