WeVote
Log In

Bill

Bill

HB 3191

Relating to a franchise tax credit for taxable entities that make certain employer child-care contributions and a study on access to and availability of child care in this state.

89th Legislature (2025) Introduced by Keith Bell and 4 co-sponsors

Bill creates franchise tax credit for employers funding child care and requires state study on Texas child care access and availability.

Placed on General State Calendar
#comptrollerofpublicaccounts(v2608) #daycare(i0209) #humanservices--childservices(i0895) #labor--general(i0500) #labor--workforcedevelopment(i0495) #taxation--franchise(i0807) #workforcecommission #texas(v0470) #workforcedevelopmentboards(v0136)
0
WeVote Research Nonpartisan
Bill Summary · HB 3191

Legislative bill overview

HB 3191 establishes a franchise tax credit for Texas businesses that contribute to employer-sponsored child care programs for their employees. Additionally, the bill mandates a study examining the current state of child care access and availability across Texas to inform future policy decisions.

Why is this important

Child care costs are a major barrier to workforce participation, particularly for lower and middle-income workers. By incentivizing employer-provided child care through tax credits, the bill aims to increase access while potentially reducing workforce shortages and improving employee retention. The accompanying study could provide data-driven recommendations for addressing Texas's child care infrastructure gaps.

Potential points of contention

  • Revenue impact: The franchise tax credit represents foregone state revenue; critics may argue these funds could be used for direct public child care support rather than corporate tax incentives
  • Equity concerns: Tax credits primarily benefit larger employers who can afford child care contributions, potentially widening disparities for employees at smaller businesses without such programs
  • Study scope and timeline: Questions remain about the study's funding, methodology, implementation timeline, and whether recommendations will be binding or merely advisory

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.