Relating to a franchise tax credit for a taxable entity that participates in the federal electronic verification of employment authorization program.

SB 1477 creates a franchise tax credit for Texas businesses that register with and actively use the federal E-Verify program to confirm employee work authorization for at least 12 consecutive months. The credit equals the business's franchise tax amount due after applying other credits, but entities can claim only one such credit. This provision applies to franchise tax reports originally due on or after January 1, 2026, and requires businesses to apply for the credit when filing their tax report. The bill does not change E-Verify participation requirements but provides a financial incentive for businesses already using the federal program.