Texas SB1097 provides a franchise tax credit for entities contributing to employees' Texas 529 plans.

Texas SB1097 amends the Tax Code to introduce a franchise tax credit for taxable entities contributing to employees' Texas 529 plans. A taxable entity qualifies for the credit if it contributes to at least one Texas 529 plan for each employee owning one or more such plans and agrees to the contribution. The credit amount is 25% of the total contributions made during the reporting period, subject to a limitation that the total credit claimed cannot exceed the franchise tax due after applying other credits. Entities can carry forward unused credits for up to five consecutive reports.

Texas SB1097 provides a franchise tax credit for entities contributing to employees' Texas 529 plans.

Texas SB1097 amends the Tax Code to introduce a franchise tax credit for taxable entities contributing to employees' Texas 529 plans. A taxable entity qualifies for the credit if it contributes to at least one Texas 529 plan for each employee owning one or more such plans and agrees to the contribution. The credit amount is 25% of the total contributions made during the reporting period, subject to a limitation that the total credit claimed cannot exceed the franchise tax due after applying other credits. Entities can carry forward unused credits for up to five consecutive reports.