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A BILL TO BE ENTITLED
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AN ACT
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relating to a franchise tax credit for taxable entities that pay the |
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expenses of or provide paid leave to an employee who donates an |
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organ. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Tax Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. TAX CREDIT FOR ORGAN DONATION BY AN EMPLOYEE |
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Sec. 171.701. ENTITLEMENT TO CREDIT. A taxable entity is |
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entitled to a credit in the amount and under the conditions provided |
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by this subchapter against the tax imposed under this chapter. |
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Sec. 171.702. QUALIFICATION. A taxable entity qualifies |
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for a credit under this subchapter if, during the period on which |
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the report is based, the taxable entity: |
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(1) pays or reimburses an employee's expenses |
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associated with: |
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(A) donating an organ; or |
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(B) recovering from an organ donation procedure |
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that occurred during the five years preceding the date the expenses |
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are incurred by the employee; or |
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(2) provides paid leave to an employee for the purpose |
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of: |
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(A) donating an organ; or |
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(B) recovering from an organ donation procedure |
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that occurred during the five years preceding the date the paid |
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leave was taken by the employee. |
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Sec. 171.703. AMOUNT OF CREDIT; LIMITATION. The amount of |
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the credit for a report is equal to the lesser of: |
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(1) the sum of: |
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(A) the total amount of expenses described by |
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Section 171.702(1) paid or reimbursed by the taxable entity for all |
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employees during the period on which the report is based; and |
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(B) the total value of paid leave described by |
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Section 171.702(2) taken by all employees during the period on |
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which the report is based; or |
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(2) the amount of franchise tax due for the report |
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after applying all other applicable credits. |
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Sec. 171.704. APPLICATION FOR CREDIT. (a) A taxable entity |
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must apply for a credit under this subchapter on or with the report |
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for the period for which the credit is claimed. |
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(b) A taxable entity must apply for the credit in the manner |
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prescribed by the comptroller and include with the application any |
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information requested by the comptroller to determine whether the |
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entity is eligible for the credit under this subchapter. |
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Sec. 171.705. ASSIGNMENT PROHIBITED; EXCEPTION. A taxable |
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entity may not convey, assign, or transfer the credit allowed under |
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this subchapter to another taxable entity unless substantially all |
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of the assets of the taxable entity are conveyed, assigned, or |
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transferred in the same transaction. |
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Sec. 171.706. RULES. The comptroller shall adopt rules |
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necessary to implement and administer this subchapter. |
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SECTION 2. Subchapter N, Chapter 171, Tax Code, as added by |
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this Act, applies only to a report originally due on or after |
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January 1, 2026. |
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SECTION 3. This Act takes effect January 1, 2026. |