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HB 5618

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.

89th Legislature (2025) Introduced by Josey Garcia

Texas bill creates franchise tax credit for employers covering employee organ donor expenses or providing paid leave, aiming to increase organ donation rates.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #health--otherdiseases&medicalconditions(i0383) #organ&tissuedonations(s0305) #taxation--franchise(i0807)
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Bill Summary · HB 5618

Legislative bill overview

HB 5618 proposes creating a franchise tax credit for Texas businesses that pay expenses or provide paid leave to employees who donate organs. The credit would incentivize employers to support organ donation by offsetting the financial burden employees face when undergoing donation procedures. This is a tax incentive measure designed to increase organ donation rates in the state.

Why is this important

Organ donation saves lives, but employees often face lost wages and medical expenses during the donation and recovery process, creating a barrier to donation. By reducing employers' tax liability when they support donating employees, this bill attempts to remove financial disincentives and potentially increase the organ donor pool. Texas has significant organ transplant demand, making supply-side initiatives relevant to public health outcomes.

Potential points of contention

  • Tax revenue impact: The bill creates a new tax credit that reduces state revenue; fiscal notes will be critical to understanding the cost-benefit analysis of incentivizing donations through foregone tax revenue
  • Scope and definition questions: The bill's language regarding what "expenses" qualify and how "paid leave" is defined could create compliance complexity and disputes between businesses and the tax authority
  • Equity concerns: Tax credits primarily benefit larger employers who can absorb donation-related costs; smaller businesses may see limited incentive or compliance burden, potentially creating unequal access to the benefit

Compiled from official sources — confirm details with the bill’s official record.

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