Relating to a franchise tax credit for taxable entities that provide child care.

Texas Senate Bill 1781 creates a new franchise tax credit for businesses that help cover employee child care costs. It directly affects Texas businesses subject to franchise tax that subsidize child care through licensed centers (either operated by the business or a commercial/home-based provider). The credit equals the lesser of the actual subsidy costs or 1.5% of the business's franchise tax after other credits. The credit applies only to tax reports due on or after January 1, 2026.