Relating to a franchise tax credit for certain child-care centers that increase their capacity to care for children.

SB 654 creates a franchise tax credit for licensed child-care centers in Texas that expand their capacity to serve more children. To qualify, centers must be certified in the Texas Rising Star Program and increase their capacity by 25% or more. The credit covers 50% to 100% of additional salaries paid for the expansion, depending on the capacity increase (50% for 25-50% growth, 75% for 50-75%, and 100% for 75%+ growth). This policy directly affects licensed child-care centers seeking to grow their operations while reducing their tax burden for hiring staff needed to accommodate more children.