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HB 5272

Relating to a franchise tax credit for taxable entities that operate an on-site child-care center for use by the entity's employees.

89th Legislature (2025) Introduced by Mary González

Texas bill creates franchise tax credit for employers operating on-site child-care centers to incentivize workplace child care availability.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #daycare(i0209) #taxation--franchise(i0807)
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Bill Summary · HB 5272

Legislative bill overview

HB 5272 would create a franchise tax credit for Texas businesses that operate on-site child-care centers for their employees. The credit would reduce the tax burden on companies that provide this employee benefit, incentivizing workplace child care availability.

Why is this important

On-site child care directly addresses workforce participation barriers, particularly for parents, and can improve employee retention and recruitment. The tax incentive could increase availability of affordable child care in underserved areas while reducing state tax revenue, creating a tradeoff between workforce development and fiscal impact.

Potential points of contention

  • Fiscal impact uncertainty: The bill's cost to state revenue is unknown without details on credit percentage, wage thresholds, or facility requirements
  • Equity concerns: Tax credits primarily benefit larger corporations capable of building/maintaining facilities; small businesses and low-income workers may see limited benefit
  • Design specifics: The bill lacks stated details on eligibility requirements, credit amount, duration, and whether centers must meet specific quality or affordability standards

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

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