Relating to a franchise tax credit for a taxable entity that provides paid parental leave to the entity's employees.

HB 2740 creates a Texas franchise tax credit for businesses that provide paid parental leave to employees. It directly affects Texas-based employers with employees in the state, requiring them to offer at least eight weeks of paid leave after childbirth, or four weeks for adoption, surrogacy, or foster care placement. The credit covers 100% of eligible leave costs for businesses with 500 or fewer Texas employees, 50% for 501-1,499 employees, and 10% for 1,500+ employees. Businesses must claim the credit on their tax reports using a state-provided form, reducing their franchise tax liability by the credit amount.