Want A School Tax Break? Cover Half Your Workers’ Child Care

The text as introduced · 714 words

89R1820 DRS-D

By: Miles, et al.
S.B. No. 489

A BILL TO BE ENTITLED

AN ACT

relating to a requirement that a person provide or contribute to the

cost of child care for the person's employees in order to be

eligible to receive a limitation on the taxable value of the

person's property for school district maintenance and operations ad

valorem tax purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 403.612, Government Code, is amended by

amending Subsection (b) and adding Subsection (c-1) to read as

follows:

(b) An agreement entered into under this section between the

governor, a school district, and an applicant pertaining to an

eligible project shall:

(1) specify the project to which the agreement

applies;

(2) specify the term of the agreement, which must:

(A) begin on the date the agreement is entered

into; and

(B) end on December 31 of the third tax year

following the end of the incentive period;

(3) specify the construction and incentive periods for

the project;

(4) specify the manner for determining the taxable

value for school district maintenance and operations ad valorem tax

purposes during the incentive period under Section 403.605 for the

eligible property subject to the agreement;

(5) specify the applicable jobs and investment

requirements prescribed by Section 403.604 and require the

applicant to comply with those requirements;

(6) require that the average annual wage paid to all

persons employed by the applicant in connection with the project

used to calculate total jobs exceed 110 percent of the average

annual wage for all jobs in the applicable industry sector during

the most recent four quarters for which data is available, as

computed by the Texas Workforce Commission, with the applicant's

average annual wage being equal to the quotient of:

(A) the applicant's total wages paid, other than

wages paid for construction jobs, as reported under Section

403.616(c)(4); and

(B) the applicant's number of total jobs as

reported under Section 403.616(c)(3);

(7) require the applicant to pay a penalty prescribed

by Section 403.614 if the applicant fails to comply with an

applicable jobs or wage requirement;

(8) require the applicant to offer and contribute to a

group health benefit plan for each employee of the applicant who is

employed in a full-time job;

(8-a) subject to Subsection (c-1), require the

applicant to provide as a benefit of employment for each employee of

the applicant who is employed in a full-time job at the site of the

project:

(A) child care provided by a licensed child-care

center:

(i) that is operated on-site by the

applicant; or

(ii) with which the applicant enters into a

contract; or

(B) payment of not less than 50 percent of the

employee's costs for child care;

(9) require the applicant, at the time the applicant

executes the agreement, to execute a performance bond in an amount

the comptroller determines to be reasonable and necessary to

protect the interests of the state and the district and conditioned

on the applicant's compliance with the terms of the agreement;

(10) authorize the governor or the district to

terminate the agreement as provided by Subsection (d); and

(11) incorporate each relevant provision of this

subchapter.

(c-1) This subsection applies to a term described by

Subsection (b)(8-a). The agreement must require the applicant to

provide the benefit described by that subsection to eligible

employees beginning on January 1 of the tax year following the first

year that a report submitted by the applicant under Section 403.616

shows that the number of required jobs created by the project at the

site of the project is 100 or more.

SECTION 2. The change in law made by this Act applies only

to an agreement limiting the taxable value of property entered into

under Subchapter T, Chapter 403, Government Code, as added by

Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular

Session, 2023, on or after the effective date of this Act. An

agreement limiting the taxable value of property entered into under

that subchapter before the effective date of this Act is governed by

the law in effect on the date the agreement was entered into, and

the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.