HB5618 - 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.

  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.