H.B. No. 3232 establishes a "Strong Families Tax Credit" designed to encourage contributions to organizations that assist at-risk families. The bill amends the Alcoholic Beverage Code and the Insurance Code to set eligibility criteria for taxpayers and entities making contributions to certified organizations. The credit amount is limited to the lesser of the contributions made or the taxes paid, with a total cap on credits awarded set at $10 million. The bill also outlines an application process for claiming the credit, requiring taxpayers to apply through the comptroller, who will verify eligibility and adopt necessary rules for implementation. The provisions will expire on January 1, 2028, but will not affect credits for contributions made prior to that date.

Additionally, the bill mandates that eligible organizations conduct criminal background checks for individuals working with children, limit administrative expenses to five percent of total contributions, and submit annual audits to the comptroller. Organizations that fail to return contributions or have their certification revoked for specific reasons will be ineligible for future certification. The strong families credits can only be claimed for contributions made on or after January 1, 2026, and unused credits may be carried forward for up to five consecutive reports. The bill prohibits the transfer of credits unless substantially all assets of the entity are transferred in the same transaction.

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