Bill > SB2018

This bill establishes a new tax credit program called the Strong Families Tax Credit, which allows taxable entities in Texas to receive a tax credit for making designated contributions to certain eligible nonprofit organizations. To qualify, organizations must be tax-exempt 501(c)(3) nonprofits that have provided services for at least three years in Texas, such as comprehensive case management for at-risk families or programs supporting fathers in parenting. The organizations cannot provide abortion services and must receive less than 50% of their annual revenue from state or local government sources. Taxable entities can receive a credit of up to $1 million, but the total credits awarded statewide are limited to $5 million annually. Organizations must submit annual documentation about their services, including background checks for staff working with children, and spend at least 95% of designated contributions on services for Texas residents. Credits can be carried forward for up to five consecutive reporting periods if not fully used in a given year. The program will be administered by the Texas Comptroller and the OneStar Foundation, and is set to expire on January 1, 2029, with applications for credits only accepted for contributions made on or after June 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2018