Relating to a franchise tax credit for taxable entities that subsidize child-care costs of the entities' employees.

This bill creates a tax credit for Texas businesses that pay for their employees' child-care costs. To qualify, a business must cover at least $2,400 per employee annually for child care at a licensed facility (including on-site locations) or a registered family home. The credit equals the lesser of the actual subsidies paid or 4% of the business's franchise tax (after other credits), with a total annual limit of $20 million for all businesses. Unused credit can be carried forward for up to two years.