Relating to the franchise and insurance premium tax credit for the certified rehabilitation of certified historic structures.

SB 2606 increases the tax credit for rehabilitating certified historic structures in Texas from 25% to 35% of eligible costs when the project occurs in a designated "distressed area." A distressed area is defined as a census tract with a poverty rate ≥40%, median family income ≤40% of HUD's area median, or unemployment ≥2.5x the national average. This bill amends Texas Tax Code Sections 172.101 and 172.106 to create this higher credit rate specifically for properties in economically disadvantaged neighborhoods. The change applies only to tax reports due on or after January 1, 2026.