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

HB 5272 creates a franchise tax credit for Texas businesses that operate licensed on-site child-care centers exclusively for their employees' children. Businesses qualify if the center is located at or near the workplace and meets licensing requirements. The credit covers 30% of the center's net operating costs (or 35% if certified in the Texas Rising Star Program), with a one-time 20% credit on construction costs for new centers. Annual credit limits cap at $100,000 or $250,000 depending on the business's total franchise tax liability.