Texas SB1231 provides a franchise tax credit for entities purchasing theft deterrent and property loss prevention equipment.

SB1231 amends the Texas Tax Code to introduce a franchise tax credit for taxable entities that purchase equipment useful or necessary to deter theft or prevent property loss. The credit amount is based on the costs and expenses incurred for eligible equipment purchases. The credit can be carried forward for up to five consecutive reports if it exceeds the limitation. The comptroller will adopt rules to implement and administer this subchapter, including a list of eligible equipment. The act applies to reports due on or after its effective date of January 1, 2026.

Texas SB1231 provides a franchise tax credit for entities purchasing theft deterrent and property loss prevention equipment.

SB1231 amends the Texas Tax Code to introduce a franchise tax credit for taxable entities that purchase equipment useful or necessary to deter theft or prevent property loss. The credit amount is based on the costs and expenses incurred for eligible equipment purchases. The credit can be carried forward for up to five consecutive reports if it exceeds the limitation. The comptroller will adopt rules to implement and administer this subchapter, including a list of eligible equipment. The act applies to reports due on or after its effective date of January 1, 2026.