Estimated Two-year Net Impact to General Revenue Related Funds for HB3191, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2027.
Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($25,000,000) for the 2026-27 biennium and ($50,000,000) in subsequent biennia. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
The bill would create a franchise tax credit for up to $3,600 per child for child-care contributions paid by taxable entities on reports originally due on or after January 1, 2027. The total amount of credits that may be awarded may not exceed $25 million per fiscal year. The total amount of credit claimed by a taxable entity may not exceed the amount of franchise tax due for the report after applying all other applicable credits. Unused credit may be carried forward for not more than five consecutive reports. The credits may be sold or assigned to other taxable entities.
The Comptroller may elect to award a credit under this subchapter by issuing a refund warrant to the entity in lieu of awarding credit against the tax due on the entity's report. If credits were improperly awarded, the comptroller may assess the amount of the improperly awarded credit against the taxable entity that was originally awarded the credit. The amount recovered may increase to total amount of credit awarded during the next state fiscal year.
The bill would require the Texas Workforce Commission (TWC) to conduct a study to examine strategies to increase access and availability of child care in this state and submit a report to the Governor, Lieutenant Governor, the Speaker of the House of Representatives, and each legislative standing committee with jurisdiction over child-care facilities by December 31, 2026.