Relating to a franchise tax credit for taxable entities that make contributions to employees' Texas 529 plans.

SB 1097 creates a 25% franchise tax credit for Texas businesses that contribute to employees' Texas 529 college savings plans. Businesses qualify if they contribute to at least one Texas 529 plan for each employee who owns one, with the employee's agreement. The credit equals 25% of the total contributions made during a reporting period, but cannot exceed the business's franchise tax liability after other credits. Unused credit can be carried forward for up to five years, and businesses may sell or assign the credit to other entities. This directly affects Texas employers with employees enrolled in the state's 529 plan.