HB3070 - Relating to a franchise tax credit for opening an early learning and child-care center in certain affordable housing developments.

  89R11816 SRA-F     By: Dutton H.B. No. 3070       A BILL TO BE ENTITLED   AN ACT   relating to a franchise tax credit for opening an early learning and   child-care center in certain affordable housing developments.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 171, Tax Code, is amended by adding   Subchapter X to read as follows:   SUBCHAPTER X.   TAX CREDIT FOR EARLY LEARNING AND CHILD-CARE CENTERS   IN CERTAIN AFFORDABLE HOUSING DEVELOPMENTS           Sec. 171.9281.  DEFINITIONS.  In this subchapter:                 (1)     "Development" has the meaning assigned by Section   2306.6702, Government Code.                 (2)     "Early learning and child-care center" means a   facility operated by an independent school district or charter   school, or a facility licensed by the Health and Human Services   Commission or by a nationally recognized accrediting organization,   that provides on-site early childhood education to children who are   five years of age or younger.           Sec.   171.9282.     ELIGIBILITY FOR CREDIT.   A taxable entity   that opens an early learning and child-care center in a development   is eligible for a credit against the tax imposed under this chapter   in the amount and under the conditions provided by this subchapter.           Sec.   171.9283.     AMOUNT OF CREDIT.   The amount of a taxable   entity's credit for a report is equal to 50 percent of the franchise   tax due for the report after applying all other credits.           Sec.   171.9284.     APPLICATION FOR CREDIT.   (a)   A taxable   entity must apply for a credit under this subchapter on or with the   report covering the period in which the early learning and   child-care center was opened.           (b)     The comptroller shall prescribe the form and method of   applying for a credit under this section.   A taxable entity must use   this method in applying for the credit under this subchapter.           Sec.   171.9285.     ASSIGNMENT PROHIBITED; EXCEPTION.   A taxable   entity may not convey, assign, or transfer the credit allowed under   this subchapter to another taxable entity unless substantially all   of the assets of the taxable entity are conveyed, assigned, or   transferred in the same transaction.           Sec.   171.9286.     RULES.   The comptroller may adopt rules and   procedures necessary to implement and administer this subchapter.          SECTION 2.  This Act applies only to a report originally due   on or after the effective date of this Act.          SECTION 3.  This Act takes effect January 1, 2026.