Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1265 mandates the Texas Workforce Commission (TWC) to publish a centralized repository of child-care tax credits, policy templates, and best practices for employers by February 1, 2026. This legislation imposes no new mandates on private businesses but creates a state-sanctioned toolkit for HR and Finance departments to optimize tax strategy and benefits packages.
Sen. Carol Alvarado·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Standard regulatory changes (effective 2025-09-01). Review during normal business planning.
Affected business types:
lowMinimal cost impact anticipated.
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Key implementation requirements and action items for compliance with this legislation
No mandatory changes. However, if you choose to adopt the TWC's provided templates (e.g., for Dependent Care Savings Accounts), you must integrate these into your Employee Handbooks and employment agreements. Critical: Do not insert TWC templates into contracts without independent legal review; the statute explicitly absolves the TWC of liability for the legal sufficiency of these forms.
Voluntary benchmarking. HR Directors should use the forthcoming TWC data to benchmark current benefits packages against state-defined "best practices" to remain competitive in recruitment. No new mandatory training is required.
None. The burden of data aggregation and website maintenance lies solely with the TWC. Employers are not required to submit child-care data or utilization reports.
None. There are no new fees. Conversely, the portal is designed to highlight the Employer-Provided Child Care Credit (45F) and other incentives, potentially reducing your tax liability.
The legislation requires the TWC to publish "best practices," a term left undefined in the statute.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about SB1265
SB1265 mandates the Texas Workforce Commission (TWC) to publish a centralized repository of child-care tax credits, policy templates, and best practices for employers by February 1, 2026. This legislation imposes no new mandates on private businesses but creates a state-sanctioned toolkit for HR and Finance departments to optimize tax strategy and benefits packages.
SB1265 was authored by Texas Senator Carol Alvarado during the Regular Session.
SB1265 was signed into law by Governor Greg Abbott on May 28, 2025.
SB1265 is enforced by Texas Workforce Commission (Charged with providing resources; no enforcement authority over employers granted by this bill).
The regulatory priority for SB1265 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1265 is estimated as "low". This may vary based on industry and implementation requirements.
SB1265 addresses topics including day care, labor, labor--general, workforce commission, texas and internet.
Key dates for SB1265: Effective date is 2025-09-01. Rulemaking: Must post the mandated web page containing child-care resources, tax credit details, and employer templates. (2026-02-01). Consult with legal counsel regarding applicability.
SB1265 primarily affects employers and workforce development organizations. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
