The bill, H.B. No. 3070, proposes the addition of a new subchapter to Chapter 171 of the Texas Tax Code, establishing a franchise tax credit for taxable entities that open early learning and child-care centers within certain affordable housing developments. The new subchapter, titled "Tax Credit for Early Learning and Child-Care Centers in Certain Affordable Housing Developments," outlines definitions, eligibility criteria, and the application process for the tax credit. Specifically, it defines an "early learning and child-care center" and stipulates that eligible entities can receive a credit equal to 50 percent of their franchise tax due after applying other credits.

The bill also includes provisions regarding the application process for the credit, which must be submitted with the tax report for the period in which the center was opened. Additionally, it prohibits the assignment or transfer of the credit to another entity unless the majority of the assets are also transferred in the same transaction. The comptroller is authorized to adopt necessary rules for the implementation of this subchapter. The act is set to take effect on January 1, 2026, and applies only to reports due on or after that date.

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