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.

HB 5618 creates a franchise tax credit for Texas businesses that cover employee expenses related to organ donation or provide paid leave for donation recovery. Specifically, it allows credits for costs like medical bills or recovery time if an employee donates an organ or recovers from donation within five years. The credit amount equals the lesser of the total covered expenses/leave value or the business’s franchise tax due after other credits. The law takes effect January 1, 2026, applying only to reports due after that date.