Texas 2025 - 89th Regular

Texas House Bill HB3232 Compare Versions

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1	1	89R10422 SRA-D
2	2	By: Harris H.B. No. 3232
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the strong families credit against certain taxes for
10	10	entities that contribute to certain organizations.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 201, Alcoholic Beverage Code, is amended
13	13	by adding Subchapter D to read as follows:
14	14	SUBCHAPTER D. STRONG FAMILIES TAX CREDIT
15	15	Sec. 201.101. DEFINITIONS. In this subchapter:
16	16	(1) "Designated contribution," "eligible
17	17	organization," and "strong families credit" have the meanings
18	18	assigned by Section 171.801, Tax Code.
19	19	(2) "Taxpayer" means a person who pays a tax under this
20	20	chapter.
21	21	Sec. 201.102. ELIGIBILITY. A taxpayer that makes a
22	22	designated contribution that meets the requirements of Subchapter
23	23	P, Chapter 171, Tax Code, is entitled to apply for a strong families
24	24	credit in the amount and under the conditions provided by this
25	25	subchapter against taxes paid under this chapter.
26	26	Sec. 201.103. AMOUNT OF CREDIT; LIMITATIONS. (a) Subject
27	27	to Subsections (b) and (c), the amount of a taxpayer's credit for a
28	28	state fiscal year is equal to the lesser of:
29	29	(1) the amount of designated contributions made to
30	30	eligible organizations during the state fiscal year; or
31	31	(2) the amount of taxes paid by the taxpayer under this
32	32	chapter during the state fiscal year.
33	33	(b) The maximum amount of strong families credits that may
34	34	be awarded is the amount provided by Section 171.805(c), Tax Code.
35	35	(c) The maximum amount of designated contributions a
36	36	taxpayer may make to all eligible organizations in a state fiscal
37	37	year is the amount provided by Section 171.805(b), Tax Code.
38	38	(d) The comptroller shall allocate strong families credits
39	39	as provided by Section 171.805(d), Tax Code.
40	40	Sec. 201.104. APPLICATION. (a) A taxpayer must apply to
41	41	claim a strong families credit against a tax imposed under this
42	42	chapter.
43	43	(b) A taxpayer must apply for the credit in the manner
44	44	prescribed by the comptroller and include with the application any
45	45	information requested by the comptroller to determine whether the
46	46	taxpayer is eligible for the credit under this subchapter.
47	47	(c) The comptroller may award a credit to a taxpayer who
48	48	applies for the credit under Subsection (a) if the taxpayer is
49	49	eligible for the credit and the credit is available under Section
50	50	171.805(c), Tax Code.
51	51	(d) The comptroller shall notify a taxpayer in writing of
52	52	the comptroller's decision to grant or deny the application under
53	53	Subsection (a). If the comptroller denies a taxpayer's
54	54	application, the comptroller shall include in the notice of denial
55	55	the reasons for the comptroller's decision.
56	56	Sec. 201.105. RULES. The comptroller may adopt rules and
57	57	procedures necessary to implement, administer, and enforce this
58	58	subchapter.
59	59	Sec. 201.106. EXPIRATION. (a) This subchapter expires
60	60	January 1, 2028.
61	61	(b) The expiration of this subchapter does not affect
62	62	credits for which a taxpayer is eligible after the date this
63	63	subchapter expires based on designated contributions made before
64	64	that date.
65	65	SECTION 2. Subtitle B, Title 3, Insurance Code, is amended
66	66	by adding Chapter 230 to read as follows:
67	67	CHAPTER 230. STRONG FAMILIES TAX CREDIT
68	68	Sec. 230.001. DEFINITIONS. In this chapter:
69	69	(1) "Designated contribution," "eligible
70	70	organization," and "strong families credit" have the meanings
71	71	assigned by Section 171.801, Tax Code.
72	72	(2) "State insurance tax liability" means any tax
73	73	liability incurred by an entity under Chapters 221 through 226 or
74	74	Chapter 281.
75	75	Sec. 230.002. ELIGIBILITY. An entity that makes a
76	76	designated contribution that meets the requirements of Subchapter
77	77	P, Chapter 171, Tax Code, is entitled to apply for a strong families
78	78	credit in the amount and under the conditions provided by this
79	79	chapter against the entity's state insurance tax liability.
80	80	Sec. 230.003. AMOUNT OF CREDIT; LIMITATION ON TOTAL
81	81	CREDITS. (a) Subject to Subsections (b) and (c), the amount of an
82	82	entity's credit for a report is equal to the lesser of:
83	83	(1) the amount of designated contributions made to an
84	84	eligible organization during the year covered by the report; or
85	85	(2) the amount of the entity's state insurance tax
86	86	liability for the year covered by the report after applying all
87	87	other applicable credits.
88	88	(b) The maximum amount of strong families credits that may
89	89	be awarded is the amount provided by Section 171.805(c), Tax Code.
90	90	(c) The maximum amount of designated contributions an
91	91	entity may make to all eligible organizations in a state fiscal year
92	92	is the amount provided by Section 171.805(b), Tax Code.
93	93	(d) The comptroller shall allocate strong families credits
94	94	as provided by Section 171.805(d), Tax Code.
95	95	Sec. 230.004. APPLICATION FOR CREDIT. (a) An entity must
96	96	apply to claim a strong families credit under this chapter on or
97	97	with the report covering the year in which the designated
98	98	contribution was made.
99	99	(b) An entity must apply for the credit in the manner
100	100	prescribed by the comptroller and include with the application any
101	101	information requested by the comptroller to determine whether the
102	102	entity is eligible for the credit under this chapter.
103	103	(c) The comptroller may award a credit to an entity that
104	104	applies for the credit under Subsection (a) if the entity is
105	105	eligible for the credit and the credit is available under Section
106	106	171.805(c), Tax Code.
107	107	Sec. 230.005. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
108	108	may not convey, assign, or transfer a strong families credit to
109	109	another entity unless substantially all of the assets of the entity
110	110	are conveyed, assigned, or transferred in the same transaction.
111	111	Sec. 230.006. RULES. The comptroller may adopt rules and
112	112	procedures necessary to implement, administer, and enforce this
113	113	chapter.
114	114	Sec. 230.007. EXPIRATION. (a) This chapter expires
115	115	January 1, 2028.
116	116	(b) The expiration of this chapter does not affect credits
117	117	for which an entity is eligible after the date this chapter expires
118	118	based on designated contributions made before that date.
119	119	SECTION 3. Chapter 171, Tax Code, is amended by adding
120	120	Subchapter P to read as follows:
121	121	SUBCHAPTER P. STRONG FAMILIES TAX CREDIT
122	122	Sec. 171.801. DEFINITIONS. In this subchapter:
123	123	(1) "At-risk family" has the meaning assigned by
124	124	Section 137.002, Human Resources Code.
125	125	(2) "Commission" means the Health and Human Services
126	126	Commission.
127	127	(3) "Designated contribution" means a monetary
128	128	contribution to an eligible organization that the contributor
129	129	designates at the time of contribution as being made for the purpose
130	130	of the strong families credit.
131	131	(4) "Eligible organization" means an organization
132	132	that is certified by the commission as an eligible organization
133	133	under this subchapter.
134	134	(5) "Strong families credit" means the tax credit
135	135	established under this subchapter that may be claimed under:
136	136	(A) Subchapter D, Chapter 201, Alcoholic
137	137	Beverage Code;
138	138	(B) Chapter 230, Insurance Code;
139	139	(C) this subchapter; or
140	140	(D) Chapter 203.
141	141	Sec. 171.802. ELIGIBILITY FOR CREDIT. A taxable entity
142	142	that makes a designated contribution that meets the requirements of
143	143	this subchapter is eligible to apply for a strong families credit in
144	144	the amount and under the conditions provided by this subchapter
145	145	against the tax imposed under this chapter.
146	146	Sec. 171.803. QUALIFICATIONS FOR ELIGIBLE ORGANIZATION;
147	147	CERTIFICATION OF ELIGIBILITY. (a) An organization may apply to the
148	148	commission for certification as an eligible organization under this
149	149	subchapter if the organization:
150	150	(1) is exempt from federal income taxation under
151	151	Section 501(a), Internal Revenue Code of 1986, as an organization
152	152	described by Section 501(c)(3) of that code;
153	153	(2) is authorized to transact business in this state;
154	154	(3) has provided the following in this state for at
155	155	least three years preceding the organization's initial application
156	156	for certification as an eligible organization:
157	157	(A) comprehensive case management services for
158	158	at-risk families based on an assessment of family strengths and
159	159	needs, including assisting families in achieving self-sufficiency,
160	160	stability, and encouraging workforce participation; and
161	161	(B) services and resources to assist fathers in
162	162	learning and improving parenting skills and being more engaged in
163	163	their children's lives through in-school programs and online
164	164	resources;
165	165	(4) does not directly or indirectly provide abortion
166	166	services, or offer information related to abortion services; and
167	167	(5) has not received, either directly or indirectly
168	168	through a contractor, more than 50 percent of its total annual
169	169	revenue from this state or a political subdivision of this state in
170	170	the preceding state fiscal year.
171	171	(b) Services and resources described by Subsection (a)(3)
172	172	must be implemented with a continuous quality improvement process
173	173	and evaluated based on outcomes.
174	174	(c) An organization must reapply for certification as an
175	175	eligible organization each calendar year by submitting to the
176	176	commission a signed application form containing:
177	177	(1) a description of the qualifying services and
178	178	resources provided by the organization;
179	179	(2) the total number of individuals served through the
180	180	services and resources described by Subdivision (1) during the
181	181	previous calendar year and the number of those individuals served
182	182	and provided with resources that year using designated
183	183	contributions;
184	184	(3) outcomes for services and resources described by
185	185	Subdivision (1);
186	186	(4) the organization's financial information;
187	187	(5) the organization's contact information;
188	188	(6) a statement, signed under penalty of perjury by an
189	189	officer of the organization, that the organization meets all
190	190	criteria to qualify as an eligible organization, has fulfilled the
191	191	requirements for the previous calendar year, and intends to fulfill
192	192	the requirements for the next calendar year; and
193	193	(7) any other documentation requested by the
194	194	commission to verify eligibility or compliance with this section.
195	195	(d) The commission shall:
196	196	(1) issue a certificate of eligibility to an eligible
197	197	applicant stating that the organization meets the qualifications of
198	198	an eligible organization;
199	199	(2) revoke an organization's certificate of
200	200	eligibility if the organization violates this subchapter or fails
201	201	to maintain the eligibility requirements of this subchapter;
202	202	(3) publish information about the strong families
203	203	credit on the commission's Internet website, including:
204	204	(A) the requirements and process for an
205	205	organization to be certified as an eligible organization; and
206	206	(B) a list of organizations currently certified
207	207	as eligible organizations; and
208	208	(4) require the return of designated contributions
209	209	made to an organization that has had the organization's
210	210	certification as an eligible organization revoked or that otherwise
211	211	fails to comply with the requirements of this subchapter.
212	212	(e) An organization that is required to return
213	213	contributions under Subsection (d)(4) is ineligible for
214	214	certification as an eligible organization.
215	215	(f) An organization whose certification as an eligible
216	216	organization lapses or is revoked for a reason other than the reason
217	217	described by Subsection (d)(4) may reapply for certification as an
218	218	eligible organization.
219	219	Sec. 171.804. DUTIES OF ELIGIBLE ORGANIZATION. (a) An
220	220	eligible organization shall:
221	221	(1) conduct a local, state, and national criminal
222	222	background check for all individuals working directly with children
223	223	in a program funded by designated contributions that includes the
224	224	use of:
225	225	(A) a commercial multistate and
226	226	multijurisdiction criminal records locator or other similar
227	227	commercial nationwide database; and
228	228	(B) the national sex offender registry database
229	229	maintained by the United States Department of Justice or a
230	230	successor agency;
231	231	(2) spend all designated contributions, other than the
232	232	amount described by Subdivision (3), to provide services or
233	233	resources for residents of this state;
234	234	(3) spend no more than five percent of the total dollar
235	235	amount of designated contributions on administrative expenses; and
236	236	(4) annually submit to the comptroller:
237	237	(A) the report of an audit of the eligible
238	238	organization conducted by an independent certified public
239	239	accountant in accordance with generally accepted auditing
240	240	principles completed not later than the 180th day after the end of
241	241	the eligible organization's fiscal year; and
242	242	(B) a copy of the eligible organization's most
243	243	recent Form 990 filed with the Internal Revenue Service.
244	244	(b) On receipt of a designated contribution, an eligible
245	245	organization shall provide the entity making the contribution with
246	246	a certificate of contribution that includes:
247	247	(1) the entity's name;
248	248	(2) the eligible organization's name;
249	249	(3) the entity's federal employer identification
250	250	number, if applicable;
251	251	(4) the amount of the designated contribution; and
252	252	(5) the date the designated contribution was made.
253	253	Sec. 171.805. AMOUNT OF CREDIT; LIMITATION ON TOTAL
254	254	CREDITS. (a) Subject to Subsections (b) and (c), the amount of a
255	255	taxable entity's credit for a report is equal to the lesser of:
256	256	(1) the amount of designated contributions made to
257	257	eligible organizations during the period covered by the report; or
258	258	(2) the amount of franchise tax due for the report
259	259	after applying all other applicable credits.
260	260	(b) A taxable entity may not apply for a credit for a report
261	261	in connection with more than $1 million in designated
262	262	contributions.
263	263	(c) The total amount of strong families credits awarded may
264	264	not exceed $10 million.
265	265	(d) The comptroller by rule shall prescribe procedures by
266	266	which the comptroller will allocate strong families credits. The
267	267	procedures must provide that any credits are allocated to entities
268	268	that apply on a first-come, first-served basis.
269	269	Sec. 171.806. CARRYFORWARD. (a) If a taxable entity is
270	270	eligible for a credit that exceeds the limitation under Section
271	271	171.805(a), the entity may carry the unused credit forward for not
272	272	more than five consecutive reports.
273	273	(b) A carryforward is considered the remaining portion of a
274	274	credit that cannot be claimed on a report because of the limitation
275	275	under Section 171.805(a).
276	276	Sec. 171.807. APPLICATION FOR CREDIT. (a) A taxable entity
277	277	must apply to claim a strong families credit under this subchapter
278	278	on or with the report covering the period in which the designated
279	279	contribution was made.
280	280	(b) A taxable entity must apply for the credit in the manner
281	281	prescribed by the comptroller and include with the application any
282	282	information requested by the comptroller to determine whether the
283	283	entity is eligible for the credit under this subchapter.
284	284	(c) The comptroller may award a credit to a taxable entity
285	285	that applies for the credit under Subsection (a) if the taxable
286	286	entity is eligible for the credit and the credit is available under
287	287	Section 171.805(c).
288	288	(d) The comptroller shall notify a taxable entity in writing
289	289	of the comptroller's decision to grant or deny the application
290	290	under Subsection (a). If the comptroller denies a taxable entity's
291	291	application, the comptroller shall include in the notice of denial
292	292	the reasons for the comptroller's decision.
293	293	Sec. 171.808. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable
294	294	entity may not convey, assign, or transfer a strong families credit
295	295	awarded under this subchapter to another taxable entity unless
296	296	substantially all of the assets of the taxable entity are conveyed,
297	297	assigned, or transferred in the same transaction.
298	298	Sec. 171.809. RULES. The commission and the comptroller
299	299	may adopt rules and procedures necessary to implement, administer,
300	300	and enforce this subchapter.
301	301	Sec. 171.810. EXPIRATION. (a) This subchapter expires
302	302	January 1, 2028.
303	303	(b) The expiration of this subchapter does not affect the
304	304	carryforward of a credit under Section 171.806 or those credits for
305	305	which a taxable entity is eligible after the date this subchapter
306	306	expires based on designated contributions made before that date.
307	307	SECTION 4. Subtitle I, Title 2, Tax Code, is amended by
308	308	adding Chapter 203 to read as follows:
309	309	CHAPTER 203. STRONG FAMILIES TAX CREDIT
310	310	Sec. 203.001. DEFINITIONS. In this chapter, "designated
311	311	contribution," "eligible organization," and "strong families
312	312	credit" have the meanings assigned by Section 171.801.
313	313	Sec. 203.002. ELIGIBILITY. A producer that makes a
314	314	designated contribution that meets the requirements of Subchapter
315	315	P, Chapter 171, is entitled to apply for a strong families credit in
316	316	the amount and under the conditions provided by this chapter
317	317	against tax paid under Chapter 201 or 202.
318	318	Sec. 203.003. AMOUNT OF CREDIT; LIMITATIONS. (a) Subject
319	319	to Subsections (b) and (c), the amount of a producer's credit for a
320	320	state fiscal year is equal to the lesser of:
321	321	(1) the amount of designated contributions made to
322	322	eligible organizations during the state fiscal year; or
323	323	(2) the amount of taxes paid by the producer under
324	324	Chapter 201 or 202, as applicable, during the state fiscal year.
325	325	(b) The maximum amount of strong families credits that may
326	326	be awarded is the amount provided by Section 171.805(c).
327	327	(c) The maximum amount of designated contributions a
328	328	producer may make to all eligible organizations in a state fiscal
329	329	year is the amount provided by Section 171.805(b).
330	330	(d) The comptroller shall allocate strong families credits
331	331	as provided by Section 171.805(d).
332	332	Sec. 203.004. APPLICATION. (a) The person responsible for
333	333	paying the tax under Chapter 201 or 202 must apply to claim a strong
334	334	families credit against that tax.
335	335	(b) The person responsible for paying the tax must apply for
336	336	the credit in the manner prescribed by the comptroller and include
337	337	with the application any information requested by the comptroller
338	338	to determine whether the person is eligible for the credit under
339	339	this section.
340	340	(c) The comptroller may award a credit to a person who
341	341	applies for the credit under Subsection (a) if the person is
342	342	eligible for the credit and the credit is available under Section
343	343	171.805(c).
344	344	(d) The comptroller shall notify a person in writing of the
345	345	comptroller's decision to grant or deny the application under
346	346	Subsection (a). If the comptroller denies a person's application,
347	347	the comptroller shall include in the notice of denial the reasons
348	348	for the comptroller's decision.
349	349	Sec. 203.005. RULES. The comptroller may adopt rules and
350	350	procedures necessary to implement, administer, and enforce this
351	351	chapter.
352	352	Sec. 203.006. EXPIRATION. (a) This chapter expires
353	353	January 1, 2028.
354	354	(b) The expiration of this chapter does not affect credits
355	355	for which a person is eligible after the date this chapter expires
356	356	based on designated contributions made before that date.
357	357	SECTION 5. (a) An entity may apply for a credit under
358	358	Subchapter D, Chapter 201, Alcoholic Beverage Code, as added by
359	359	this Act, Chapter 230, Insurance Code, as added by this Act,
360	360	Subchapter P, Chapter 171, Tax Code, as added by this Act, or
361	361	Chapter 203, Tax Code, as added by this Act, only for a designated
362	362	contribution made on or after January 1, 2026.
363	363	(b) Subchapter D, Chapter 201, Alcoholic Beverage Code, as
364	364	added by this Act, Chapter 230, Insurance Code, as added by this
365	365	Act, Subchapter P, Chapter 171, Tax Code, as added by this Act, and
366	366	Chapter 203, Tax Code, as added by this Act, apply only to a report
367	367	originally due on or after January 1, 2026.
368	368	SECTION 6. This Act takes effect January 1, 2026.