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HB 3011

Relating to a franchise tax credit for taxable entities that make certain employer child-care contributions.

89th Legislature (2025) Introduced by Angie Button

Texas bill creates franchise tax credits for employers contributing to child-care programs, aiming to reduce tax liability while incentivizing workplace child-care support.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #daycare(i0209) #labor--general(i0500) #taxation--franchise(i0807)
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Bill Summary · HB 3011

Legislative bill overview

HB 3011 creates a franchise tax credit for Texas businesses that make contributions to employer-sponsored child-care programs or services. The bill allows eligible taxable entities to reduce their franchise tax liability based on qualifying child-care expenditures they fund for their employees.

Why is this important

Child-care costs are a significant barrier to workforce participation, particularly for working parents. By incentivizing employers to contribute to child-care solutions through tax credits, the bill aims to improve employee retention, reduce absenteeism, and expand affordable child-care access—ultimately supporting both business operations and workforce stability in Texas.

Potential points of contention

  • Tax revenue impact: The franchise tax credit reduces state revenue without clear projections on costs or limits on credit amounts, raising questions about fiscal sustainability
  • Benefit distribution: Tax credits primarily benefit larger, profitable corporations that already pay franchise taxes; small businesses and lower-income workers may see limited gains
  • Credit design details: The bill's text doesn't specify credit percentages, caps, or eligibility thresholds, leaving uncertainty about whether contributions are partially or fully offset

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

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