TX SB2606

Increases the tax credit for certified rehabilitation of historic structures located in "distressed areas" from 25% to 35% of eligible costs and expenses

Defines "distressed area" as a census tract meeting any of these criteria: poverty rate of 40% or higher, median family income at or below 40% of the HUD-established area median, or unemployment rate at least 2.5 times the national average

Maintains the existing 25% tax credit cap for certified historic structure rehabilitations not located in distressed areas

Applies to franchise tax and insurance premium tax credits

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