Texas SB1781 provides a franchise tax credit for entities subsidizing employee child care costs.

Texas SB1781 amends the Tax Code to create a franchise tax credit for entities that subsidize employee child care costs. A qualifying entity can receive a credit equal to the lesser of the actual costs or 1.5% of the franchise tax due. The credit applies to child care at licensed centers operated by the entity or commercial/home-based centers. The comptroller will implement the credit through necessary rules. The credit cannot be assigned unless all entity assets are transferred. The changes take effect January 1, 2026.

Texas SB1781 provides a franchise tax credit for entities subsidizing employee child care costs.

Texas SB1781 amends the Tax Code to create a franchise tax credit for entities that subsidize employee child care costs. A qualifying entity can receive a credit equal to the lesser of the actual costs or 1.5% of the franchise tax due. The credit applies to child care at licensed centers operated by the entity or commercial/home-based centers. The comptroller will implement the credit through necessary rules. The credit cannot be assigned unless all entity assets are transferred. The changes take effect January 1, 2026.