TX HB5273

Creates a franchise tax credit for taxable entities operating licensed child-care centers certified as Texas Rising Star Program providers that increase their capacity to care for children

Credit amounts are tiered based on capacity increases: 50% of additional salary costs for 25-49% capacity increase, 75% for 50-74% increase, and 100% for 75% or greater increase

Affiliated groups filing combined reports must increase capacity at 50% or more of their locations to qualify, with the same tiered credit structure applying

Entities can claim the credit for up to three consecutive reporting periods if they maintain the increased capacity, but total credits cannot exceed franchise tax due after other credits are applied

Credits cannot be transferred to another entity unless substantially all assets are also transferred; takes effect January 1, 2026