Bill Text: TX HB3542 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a franchise tax credit for opening an early learning and child-care center in certain affordable housing developments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-16 - Referred to Ways & Means [HB3542 Detail]
Download: Texas-2023-HB3542-Introduced.html
88R11063 SRA-F | ||
By: Dutton | H.B. No. 3542 |
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relating to a franchise tax credit for opening an early learning and | ||
child-care center in certain affordable housing developments. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 171, Tax Code, is amended by adding | ||
Subchapter N to read as follows: | ||
SUBCHAPTER N. TAX CREDIT FOR EARLY LEARNING AND CHILD-CARE CENTERS | ||
IN CERTAIN AFFORDABLE HOUSING DEVELOPMENTS | ||
Sec. 171.701. DEFINITIONS. In this subchapter: | ||
(1) "Development" has the meaning assigned by Section | ||
2306.6702, Government Code. | ||
(2) "Early learning and child-care center" means a | ||
facility operated by an independent school district or charter | ||
school, or a facility licensed by the Health and Human Services | ||
Commission or by a nationally recognized accrediting organization, | ||
that provides on-site early childhood education to children aged | ||
zero to five years old. | ||
Sec. 171.702. ELIGIBILITY FOR CREDIT. A taxable entity | ||
that opens an early learning and child-care center in a development | ||
is eligible for a credit against the tax imposed under this chapter | ||
in the amount and under the conditions provided by this subchapter. | ||
Sec. 171.703. AMOUNT OF CREDIT. The amount of a taxable | ||
entity's credit for a report is equal to 50 percent of the franchise | ||
tax due for the report after applying all other credits. | ||
Sec. 171.704. APPLICATION FOR CREDIT. (a) A taxable entity | ||
must apply for a credit under this subchapter on or with the report | ||
covering the period in which the early learning and child-care | ||
center was opened. | ||
(b) The comptroller shall prescribe the form and method of | ||
applying for a credit under this section. A taxable entity must use | ||
this method in applying for the credit under this subchapter. | ||
Sec. 171.705. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable | ||
entity may not convey, assign, or transfer the credit allowed under | ||
this subchapter to another taxable entity unless substantially all | ||
of the assets of the taxable entity are conveyed, assigned, or | ||
transferred in the same transaction. | ||
Sec. 171.706. RULES. The comptroller may adopt rules and | ||
procedures necessary to implement and administer this subchapter. | ||
SECTION 2. This Act applies only to a report originally due | ||
on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2024. |