WeVote
Log In

Bill

Bill

SB 1803

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

89th Legislature (2025) Introduced by Carol Alvarado

Texas bill creates franchise tax credits for employers who subsidize employee child care, reducing state tax liability to incentivize workplace child-care benefits.

Referred to Finance
#comptrollerofpublicaccounts(v2608) #daycare(i0209) #taxation--franchise(i0807)
0
WeVote Research Nonpartisan
Bill Summary · SB 1803

Legislative bill overview

SB 1803 would create a franchise tax credit for Texas businesses that directly subsidize child-care costs for their employees. The credit would reduce franchise tax liability for companies investing in employee child-care benefits, effectively offsetting a portion of their child-care subsidy expenses through state tax breaks.

Why is this important

Child care is a significant barrier to workforce participation and employee retention, particularly for lower and middle-income workers. By offering tax incentives, the bill attempts to make child-care subsidies more financially attractive to employers, potentially expanding access to affordable care while addressing workforce development challenges.

Potential points of contention

  • Revenue impact: The state foregoes tax revenue through credits, requiring analysis of fiscal cost versus economic benefits and whether those benefits justify reduced funding availability for other programs
  • Equity concerns: Tax credits primarily benefit larger, profitable corporations that can afford subsidies; small businesses and struggling companies may see no benefit, potentially widening competitive advantages
  • Defining "subsidy": The bill's effectiveness depends on how child-care subsidies are defined and verified, creating implementation questions about eligible expenses and preventing abuse or fraud

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

Sign in to ask a question.