| 1 | 1 | | 89R18026 SRA-D |
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| 2 | 2 | | By: Garcia of Bexar H.B. No. 5618 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to a franchise tax credit for taxable entities that pay the |
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| 10 | 10 | | expenses of or provide paid leave to an employee who donates an |
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| 11 | 11 | | organ. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Chapter 171, Tax Code, is amended by adding |
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| 14 | 14 | | Subchapter N to read as follows: |
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| 15 | 15 | | SUBCHAPTER N. TAX CREDIT FOR ORGAN DONATION BY AN EMPLOYEE |
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| 16 | 16 | | Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is |
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| 17 | 17 | | entitled to a credit in the amount and under the conditions provided |
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| 18 | 18 | | by this subchapter against the tax imposed under this chapter. |
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| 19 | 19 | | Sec. 171.702. QUALIFICATION. A taxable entity qualifies |
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| 20 | 20 | | for a credit under this subchapter if, during the period on which |
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| 21 | 21 | | the report is based, the taxable entity: |
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| 22 | 22 | | (1) pays or reimburses an employee's expenses |
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| 23 | 23 | | associated with: |
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| 24 | 24 | | (A) donating an organ; or |
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| 25 | 25 | | (B) recovering from an organ donation procedure |
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| 26 | 26 | | that occurred during the five years preceding the date the expenses |
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| 27 | 27 | | are incurred by the employee; or |
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| 28 | 28 | | (2) provides paid leave to an employee for the purpose |
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| 29 | 29 | | of: |
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| 30 | 30 | | (A) donating an organ; or |
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| 31 | 31 | | (B) recovering from an organ donation procedure |
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| 32 | 32 | | that occurred during the five years preceding the date the paid |
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| 33 | 33 | | leave was taken by the employee. |
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| 34 | 34 | | Sec. 171.703. AMOUNT OF CREDIT; LIMITATION. The amount of |
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| 35 | 35 | | the credit for a report is equal to the lesser of: |
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| 36 | 36 | | (1) the sum of: |
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| 37 | 37 | | (A) the total amount of expenses described by |
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| 38 | 38 | | Section 171.702(1) paid or reimbursed by the taxable entity for all |
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| 39 | 39 | | employees during the period on which the report is based; and |
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| 40 | 40 | | (B) the total value of paid leave described by |
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| 41 | 41 | | Section 171.702(2) taken by all employees during the period on |
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| 42 | 42 | | which the report is based; or |
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| 43 | 43 | | (2) the amount of franchise tax due for the report |
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| 44 | 44 | | after applying all other applicable credits. |
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| 45 | 45 | | Sec. 171.704. APPLICATION FOR CREDIT. (a) A taxable entity |
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| 46 | 46 | | must apply for a credit under this subchapter on or with the report |
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| 47 | 47 | | for the period for which the credit is claimed. |
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| 48 | 48 | | (b) A taxable entity must apply for the credit in the manner |
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| 49 | 49 | | prescribed by the comptroller and include with the application any |
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| 50 | 50 | | information requested by the comptroller to determine whether the |
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| 51 | 51 | | entity is eligible for the credit under this subchapter. |
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| 52 | 52 | | Sec. 171.705. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable |
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| 53 | 53 | | entity may not convey, assign, or transfer the credit allowed under |
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| 54 | 54 | | this subchapter to another taxable entity unless substantially all |
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| 55 | 55 | | of the assets of the taxable entity are conveyed, assigned, or |
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| 56 | 56 | | transferred in the same transaction. |
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| 57 | 57 | | Sec. 171.706. RULES. The comptroller shall adopt rules |
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| 58 | 58 | | necessary to implement and administer this subchapter. |
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| 59 | 59 | | SECTION 2. Subchapter N, Chapter 171, Tax Code, as added by |
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| 60 | 60 | | this Act, applies only to a report originally due on or after |
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| 61 | 61 | | January 1, 2026. |
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| 62 | 62 | | SECTION 3. This Act takes effect January 1, 2026. |
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