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 create a framework for taxpayers and entities to apply for tax credits based on their designated contributions to certified organizations. Key definitions are provided, including "designated contribution," "eligible organization," and "strong families credit." The credit amount is capped at the lesser of the designated contributions made or the taxes paid, with additional limits on total credits and contributions allowed. The Texas Comptroller will oversee the allocation and application process, ensuring that necessary information is submitted to determine eligibility.

The legislation also imposes specific requirements on eligible organizations, such as conducting criminal background checks for staff working with children, limiting administrative expenses, and submitting annual audits, with the risk of losing certification for non-compliance. The provisions of the bill will expire on January 1, 2028, but any credits earned before that date will remain valid. The program is set to begin on January 1, 2026, with applications for credits accepted only for contributions made after that date.

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