Texas SB654 proposes a franchise tax credit for child-care centers that increase their capacity.

The bill, Texas SB654, amends the Tax Code to create a franchise tax credit for certain child-care centers that increase their capacity to care for children. The credit is available to taxable entities that operate licensed child-care centers. The amount of the credit varies based on the percentage increase in capacity, with a maximum credit of 100 percent of the additional salary associated with the increase. The credit cannot be assigned or transferred to another entity unless substantially all of the assets are conveyed, assigned, or transferred in the same transaction.

Texas SB654 proposes a franchise tax credit for child-care centers that increase their capacity.

The bill, Texas SB654, amends the Tax Code to create a franchise tax credit for certain child-care centers that increase their capacity to care for children. The credit is available to taxable entities that operate licensed child-care centers. The amount of the credit varies based on the percentage increase in capacity, with a maximum credit of 100 percent of the additional salary associated with the increase. The credit cannot be assigned or transferred to another entity unless substantially all of the assets are conveyed, assigned, or transferred in the same transaction.