WeVote
Log In

Bill

Bill

SB 2164

Relating to employer incentive payments for child care for employees, including creating an employer child-care contribution partnership program and a franchise tax credit for taxable entities that make certain employer child-care contributions; authorizing a civil penalty.

89th Legislature (2025) Introduced by César Blanco and 1 co-sponsor

Texas bill creates employer tax credits and partnership program to subsidize employee child-care costs, aiming to boost workforce participation and retention while reducing state tax revenue.

Referred to Finance
#comptrollerofpublicaccounts(v2608) #civilremedies&liabilities(i0065) #daycare(i0209) #employeebenefits&leave(s0452) #labor--general(i0500) #statefinances--management&control(i0748) #taxation--franchise(i0807) #workforcecommission #texas(v0470)
0
WeVote Research Nonpartisan
Bill Summary · SB 2164

Legislative bill overview

SB 2164 establishes an employer child-care contribution partnership program in Texas and creates a franchise tax credit for businesses that provide child-care assistance to employees. The bill authorizes civil penalties for non-compliance with program requirements.

Why is this important

Child-care costs are a significant barrier to workforce participation, particularly for lower-income workers. By incentivizing employers to subsidize child care through tax benefits, the bill aims to increase employee retention, reduce absenteeism, and expand access to affordable child care—addressing both labor market and family economic pressures.

Potential points of contention

  • Tax revenue impact: Franchise tax credits reduce state revenues; fiscal analysis will determine whether job creation and workforce participation gains offset foregone tax income
  • Program design clarity: The bill's specific contribution requirements, eligible child-care providers, and partnership structure are not detailed in this summary and may face scrutiny regarding feasibility and fairness
  • Equity concerns: Tax-based incentives primarily benefit employees at larger employers; questions may arise about coverage for small businesses and low-wage workers in non-participating companies

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

Sign in to ask a question.