Texas SB2606 amends tax credits for rehabilitating certified historic structures, allowing higher credits for those in distressed areas.

Texas SB2606 modifies the franchise and insurance premium tax credit for the rehabilitation of certified historic structures. It limits the credit to 25 percent of total eligible costs for structures not in distressed areas. For structures in distressed areas, defined as those with a poverty rate of 40 percent or more, a median family income of 40 percent or less of the area median family income, or an unemployment rate at least 2.5 times the national average, the credit increases to 35 percent. These changes apply to tax reports due on or after the bill's effective date of January 1, 2026.

Texas SB2606 amends tax credits for rehabilitating certified historic structures, allowing higher credits for those in distressed areas.

Texas SB2606 modifies the franchise and insurance premium tax credit for the rehabilitation of certified historic structures. It limits the credit to 25 percent of total eligible costs for structures not in distressed areas. For structures in distressed areas, defined as those with a poverty rate of 40 percent or more, a median family income of 40 percent or less of the area median family income, or an unemployment rate at least 2.5 times the national average, the credit increases to 35 percent. These changes apply to tax reports due on or after the bill's effective date of January 1, 2026.