TX SB1781

Creates a new franchise tax credit for taxable entities that subsidize all or part of their employees' child care costs at licensed child-care centers (either employer-operated or commercial/home-based facilities)

Credit amount equals the lesser of the actual costs spent on subsidizing employee child care or 1.5% of the franchise tax due after applying all other credits

Prohibits transfer or assignment of the credit to another entity unless substantially all assets are transferred in the same transaction

Requires the comptroller to adopt rules for implementation and entities must apply for the credit with their franchise tax report

Takes effect January 1, 2026, and applies only to reports originally due on or after that date