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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for opening an early learning and |
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child-care center in certain affordable housing developments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. TAX CREDIT FOR EARLY LEARNING AND CHILD-CARE CENTERS |
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IN CERTAIN AFFORDABLE HOUSING DEVELOPMENTS |
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Sec. 171.701. DEFINITIONS. In this subchapter: |
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(1) "Development" has the meaning assigned by Section |
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2306.6702, Government Code. |
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(2) "Early learning and child-care center" means a |
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facility operated by an independent school district or charter |
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school, or a facility licensed by the Health and Human Services |
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Commission or by a nationally recognized accrediting organization, |
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that provides on-site early childhood education to children aged |
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zero to five years old. |
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Sec. 171.702. ELIGIBILITY FOR CREDIT. A taxable entity |
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that opens an early learning and child-care center in a development |
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is eligible for a credit against the tax imposed under this chapter |
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in the amount and under the conditions provided by this subchapter. |
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Sec. 171.703. AMOUNT OF CREDIT. The amount of a taxable |
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entity's credit for a report is equal to 50 percent of the franchise |
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tax due for the report after applying all other credits. |
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Sec. 171.704. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the report |
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covering the period in which the early learning and child-care |
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center was opened. |
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(b) The comptroller shall prescribe the form and method of |
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applying for a credit under this section. A taxable entity must use |
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this method in applying for the credit under this subchapter. |
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Sec. 171.705. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable |
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entity may not convey, assign, or transfer the credit allowed under |
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this subchapter to another taxable entity unless substantially all |
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of the assets of the taxable entity are conveyed, assigned, or |
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transferred in the same transaction. |
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Sec. 171.706. RULES. The comptroller may adopt rules and |
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procedures necessary to implement and administer this subchapter. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2024. |