The bill, S.B. No. 1231, introduces a new franchise tax credit for taxable entities that purchase theft deterrent and property loss prevention equipment. It amends Chapter 171 of the Tax Code by adding Subchapter N, which outlines the eligibility criteria for the credit, the amount of the credit, and the process for applying. Taxable entities can qualify for the credit by purchasing eligible equipment as defined in the bill. The credit amount is based on the total costs incurred for these purchases, with a limitation that the total credit claimed cannot exceed the franchise tax due after applying other applicable credits. Additionally, any unused credit can be carried forward for up to five consecutive reports.

The bill also establishes guidelines for the application process, stating that entities must apply for the credit with their tax report for the relevant period. The comptroller is tasked with prescribing the application form and may require additional information to determine eligibility. Furthermore, the bill prohibits the assignment of the credit to another entity unless a substantial portion of the assets is transferred in the same transaction. The provisions of this Act will apply to reports due on or after its effective date of January 1, 2026.

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