TX SB1097

Creates a franchise tax credit equal to 25% of employer contributions made to employees' Texas 529 college savings plans administered by the Prepaid Higher Education Tuition Board

Requires employers to contribute to at least one Texas 529 plan for each participating employee who owns a plan and consents to employer contributions; salary and wages paid to employees do not qualify as contributions

Allows unused credits to be carried forward for up to 5 consecutive reporting periods; total credits claimed cannot exceed franchise tax liability after applying other credits

Permits taxable entities to sell or assign all or part of earned credits to other entities, with no limit on the number of transfer transactions; joint written notice to the comptroller is required within 30 days of sale or assignment

Takes effect January 1, 2026, applying to franchise tax reports originally due on or after that date