bill giving a franchise tax credit for organ donor leave

The text as introduced · 472 words

89R18026 SRA-D

By: Garcia of Bexar
H.B. No. 5618

A BILL TO BE ENTITLED

AN ACT

relating to a franchise tax credit for taxable entities that pay the

expenses of or provide paid leave to an employee who donates an

organ.

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

SECTION 1. Chapter 171, Tax Code, is amended by adding

Subchapter N to read as follows:

SUBCHAPTER N. TAX CREDIT FOR ORGAN DONATION BY AN EMPLOYEE

Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is

entitled to a credit in the amount and under the conditions provided

by this subchapter against the tax imposed under this chapter.

Sec. 171.702. QUALIFICATION. A taxable entity qualifies

for a credit under this subchapter if, during the period on which

the report is based, the taxable entity:

(1) pays or reimburses an employee's expenses

associated with:

(A) donating an organ; or

(B) recovering from an organ donation procedure

that occurred during the five years preceding the date the expenses

are incurred by the employee; or

(2) provides paid leave to an employee for the purpose

of:

(A) donating an organ; or

(B) recovering from an organ donation procedure

that occurred during the five years preceding the date the paid

leave was taken by the employee.

Sec. 171.703. AMOUNT OF CREDIT; LIMITATION. The amount of

the credit for a report is equal to the lesser of:

(1) the sum of:

(A) the total amount of expenses described by

Section 171.702(1) paid or reimbursed by the taxable entity for all

employees during the period on which the report is based; and

(B) the total value of paid leave described by

Section 171.702(2) taken by all employees during the period on

which the report is based; or

(2) the amount of franchise tax due for the report

after applying all other applicable credits.

Sec. 171.704. APPLICATION FOR CREDIT. (a) A taxable entity

must apply for a credit under this subchapter on or with the report

for the period for which the credit is claimed.

(b) A taxable entity must apply for the credit in the manner

prescribed by the comptroller and include with the application any

information requested by the comptroller to determine whether the

entity is eligible for the credit under this subchapter.

Sec. 171.705. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable

entity may not convey, assign, or transfer the credit allowed under

this subchapter to another taxable entity unless substantially all

of the assets of the taxable entity are conveyed, assigned, or

transferred in the same transaction.

Sec. 171.706. RULES. The comptroller shall adopt rules

necessary to implement and administer this subchapter.

SECTION 2. Subchapter N, Chapter 171, Tax Code, as added by

this Act, applies only to a report originally due on or after

January 1, 2026.

SECTION 3. This Act takes effect January 1, 2026.