H.B. No. 3011 introduces a new franchise tax credit for taxable entities that make contributions towards child care for their employees. The bill adds Subchapter N-1 to Chapter 171 of the Tax Code, defining "child-care contribution" as monetary contributions made by a taxable entity to help employees secure child care at licensed facilities. The credit amount is based on the total contributions made during the reporting period, with a cap of $3,600 per child. The total credits awarded in a fiscal year are limited to $25 million, and the comptroller is tasked with establishing rules for the allocation of these credits.

Additionally, the bill outlines the process for applying for the credit, including the requirement for taxable entities to submit applications with their reports. It allows for the carryforward of unused credits for up to five consecutive reports and permits the sale or assignment of credits between taxable entities. The provisions of this subchapter will apply to reports due on or after January 1, 2026, and the act will take effect on the same date.

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