Texas SB1803 provides a franchise tax credit for entities subsidizing employee child-care costs.

Texas SB1803 amends the Tax Code to introduce a franchise tax credit for taxable entities that subsidize child-care costs for their employees. Eligible entities can claim a credit equal to the lesser of the total subsidies paid or four percent of the franchise tax due. The credit cannot exceed the tax due after applying other credits and may be carried forward for up to two consecutive reports. The total credits awarded annually are capped at $20 million, with allocation procedures to be set by the comptroller.

Texas SB1803 provides a franchise tax credit for entities subsidizing employee child-care costs.

Texas SB1803 amends the Tax Code to introduce a franchise tax credit for taxable entities that subsidize child-care costs for their employees. Eligible entities can claim a credit equal to the lesser of the total subsidies paid or four percent of the franchise tax due. The credit cannot exceed the tax due after applying other credits and may be carried forward for up to two consecutive reports. The total credits awarded annually are capped at $20 million, with allocation procedures to be set by the comptroller.