Struggling Texas Child Care Centers – New Tax Credit Exemption As Their Saving Grace!

The tax credit exemption is expected to ease the financial struggles of Texas child care centers.

This tax exemption involving the Texas child care centers is called Proposition 2. (Photo: Community Playthings)

The Struggle Of Texas Child Care Centers

Texas child care centers are facing financial struggles post-pandemic, but a new tax credit exemption for land used by Texas child care centers is gaining traction in major metropolitan areas.

The exemption involving Texas child care centers, known as Proposition 2, has been adopted by counties and cities in San Antonio, Dallas, Austin, and Houston, as well as other regions.

According to a published article by SmartNews, this tax break will save owners thousands of dollars each year and is seen as a lifeline for struggling Texas child care centers.

However, the impact is limited to a fraction of Texas child care centers in the state, and questions remain about enforcement and eligibility requirements.

Nonetheless, advocates are pushing for the tax credit to be made available to as many Texas child care centers as possible to alleviate financial strains in the industry.

San Antonio’s Tax Exemptions

In a published article by San Antonio Report, San Antonio approved property tax exemptions for childcare facilities to help reduce financial burdens on providers and families.

Following Bexar County’s lead, childcare centers can apply for a 100% exemption with the Bexar Appraisal District. This comes after a November proposition and Senate Bill 1145 qualified some centers for a tax break. 176 San Antonio-area centers are eligible.

Landlords who file for the exemption must reimburse tenants for the tax savings. The goal is to keep more childcare facilities open and support working families.

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