Relating to a franchise or insurance premium tax credit for certain housing developments.

SB 2814 creates a Texas franchise or insurance premium tax credit for developers owning housing projects that qualify for federal low-income housing credits (Section 42 of the Internal Revenue Code). To qualify, developments must have an active federal credit allocation, maintain a valid land use covenant, and comply with accessibility and civil rights laws. The credit allows annual tax reductions over a 10-year period per building, with a state annual limit of $25 million in total credits. This directly affects developers and property owners who meet all federal and state eligibility criteria for qualified low-income housing developments.