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.