S.B. No. 2164 establishes the Employer Child-Care Contribution Partnership Program in Texas, designed to encourage employers to assist with their employees' child-care expenses. The program, administered by a designated commission, requires employers to contribute a minimum of $1,200 annually for each eligible employee's child enrolled in a qualifying child-care program. The commission will match funds contributed by eligible employers, with a maximum state match of $3,600 per child, and the total program funding capped at $25 million per state fiscal biennium. The bill also mandates that employees inform the commission if they receive subsidized child care from other sources, ensuring transparency and proper allocation of resources.

Additionally, the bill introduces a new subchapter in the Tax Code allowing taxable entities to claim a tax credit for their contributions to child-care services, limited to $3,600 per child and an overall cap of $25 million in credits awarded annually. Unused credits can be carried forward for up to five consecutive reports, and provisions are included to prevent the same expenditure from being used for multiple credits. The effective date for the tax credit provisions is set for January 1, 2026, while the overall bill will take effect on September 1, 2025.

Statutes affected:
Introduced: Subtitle B, Title , Labor Code 1.01, Chapter , Tax Code 2.01 (Chapter , Tax Code 2, Subtitle B, Title , Labor Code 1)