Relating to a franchise tax credit for taxable entities that purchase certain theft deterrent and property loss prevention equipment.

SB 1231 creates a franchise tax credit for Texas businesses that purchase approved theft deterrent and property loss prevention equipment. Businesses can claim a credit equal to the full cost of eligible equipment (as listed by the comptroller), up to their total franchise tax liability after other credits. Unused credit can be carried forward for up to five years. The bill applies to reports filed on or after January 1, 2026, and requires businesses to apply for the credit when filing their franchise tax reports.