SB 211 —

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends the Texas statutes.

• SUBCHAPTER O-1. TAX CREDIT FOR OPERATION OF ON-SITE CHILD-CARE CENTERS Sec. 171.781. DEFINITIONS. In this subchapter: (1) "Employee" means an individual who performs services for an employer for compensation under an oral or written contract of hire, whether express or implied. The term does not include an independent contractor. (2) "Licensed child-care center" means a child-care center licensed, certified, or registered by the Department of Family and Protective Services to provide assessment, care, training, education, custody, treatment, or supervision for a child who is not related by blood, marriage, or adoption to the owner or operator of the center, for all or part of the 24-hour day, whether or not the center is operated for profit or charges for the services it offers. Sec. 171.782. ENTITLEMENT TO CREDIT. A taxable entity is entitled to a credit in the amount and under the conditions provided by this subchapter against the tax imposed under this chapter. Sec. 171.783. QUALIFICATION. A taxable entity qualifies for a credit under this subchapter if the taxable entity establishes and operates a licensed child-care center that is: (1) available exclusively to the employees of the entity for the purpose of providing care for the employees' children and dependents; and (2) located at or immediately adjacent to the site at which the employees using the center work. Sec. 171.784. AMOUNT OF CREDIT; LIMITATIONS. (a) Subject to Subsection (c), the amount of the credit a taxable entity may claim on a report is equal to: (1) 30 percent of the entity's net cost to operate the licensed child-care center during the period on which the report is based; or (2) if the licensed child-care center is certified as a provider in the Texas Rising Star Program, 35 percent of the entity's net cost to operate the licensed child-care center during the period on which the report is based. (b) Notwithstanding Subsection (a) and subject to Subsection (c), the amount of the credit a taxable entity may claim on the first report due after the date the entity first opens the licensed child-care center is equal to 20 percent of the total amount spent by the entity to construct the center and prepare the center for initial operation. (c) The total amount of credit claimed by a taxable entity on a report may not exceed the lesser of: (1) the amount of franchise tax due for the report after the application of any other applicable credits; or (2) the amount from the following list that applies to the report: (A) $100,000 if the total amount of franchise tax due for the report is $3 million or less after applying all other applicable credits; (B) $250,000 if the total amount of franchise tax due for the report is more than $3 million but less than $10 million after applying all other applicable credits; or (C) $500,000 if the total amount of franchise tax due for the report is $10 million or more after applying all other applicable credits. Sec. 171.785. APPLICATION FOR CREDIT. (a) A taxable entity must apply for a credit under this subchapter on or with the report for the period for which the credit is claimed. (b) A taxable entity must apply for the credit in the manner prescribed by the comptroller and include with the application any information requested by the comptroller to determine whether the entity is eligible for the credit under this subchapter. Sec. 171.786. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable entity may not convey, assign, or transfer a credit under this subchapter to another entity unless substantially all of the assets of the taxable entity are conveyed, assigned, or transferred in the same transaction. Sec. 171.787. RULES. The comptroller shall adopt rules necessary to implement and administer this subchapter.

  amended