S.B. No. 2018 introduces the "Strong Families Tax Credit," a new tax incentive designed to encourage taxable entities to contribute to organizations that support at-risk families. The bill establishes a new Subchapter P in Chapter 171 of the Tax Code, defining terms such as "at-risk family," "designated contribution," and "eligible organization." To qualify for the credit, organizations must be exempt from federal income taxation, provide specific services for a minimum of three years, and refrain from offering abortion services. The OneStar Foundation is tasked with certifying eligible organizations, which are required to submit annual reports to maintain their status. The tax credit is capped at $5 million per year, with contributions eligible for the credit starting June 1, 2026.

The bill outlines the application process for the tax credit and allows taxable entities to carry forward unused credits for up to five consecutive reports if their awarded credit exceeds the annual limit. It also restricts the transfer of credits unless the entity's assets are substantially conveyed in the same transaction. The subchapter is set to expire on January 1, 2029, but any credits earned before that date can still be claimed. S.B. No. 2018 has received strong bipartisan support, passing both the Senate and House with unanimous votes, and is now awaiting the Governor's approval to become law.

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