TX SB1477

Creates a franchise tax credit for taxable entities that register and participate in the federal E-Verify program to verify employee work authorization for at least 12 consecutive months

Credit amount equals the full franchise tax due for the reporting period after applying all other applicable credits, effectively eliminating franchise tax liability for qualifying entities

Each taxable entity may claim the credit only once (one-time benefit)

Applications must be submitted with the franchise tax report for the period claimed, following procedures prescribed by the comptroller

Applies to reports originally due on or after January 1, 2026, with the act taking effect immediately upon two-thirds vote or September 1, 2025