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Bill

Bill

SB 2018

Relating to the strong families credit against certain taxes for entities that contribute to certain organizations.

89th Legislature (2025) Introduced by César Blanco and 9 co-sponsors

Texas establishes tax credits for entities donating to qualifying organizations, reducing state tax revenue while incentivizing private charitable contributions.

Effective on . . . . . . . . . . . . . . .
#comptrollerofpublicaccounts(v2608) #charitable&nonprofitorganizations(i0055) #family--parent&child(i0355) #health&humanservicescommission(v0177) #statefinances--management&control(i0748) #taxation--franchise(i0807)
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WeVote Research Nonpartisan
Bill Summary · SB 2018

Legislative bill overview

SB 2018 establishes a "Strong Families Credit" that allows businesses and other entities to claim tax credits against their state tax liabilities when they make financial contributions to qualifying organizations. The bill creates a new incentive mechanism to encourage private-sector funding of specific organizations, likely focused on family-related services or charitable work.

Why is this important

Tax credits directly reduce the amount of taxes owed, making them more valuable than simple deductions. This bill channels private funding toward designated organizations while reducing state tax revenue, effectively using the tax code to subsidize certain activities. The real-world impact depends on which organizations qualify and how much funding is redirected from public coffers to private charitable activities.

Potential points of contention

  • Revenue loss: Tax credits reduce state income, requiring either budget cuts elsewhere, tax increases, or deficit spending to offset lost revenue
  • Qualifying organization selection: The criteria for which organizations receive credit-backed funding could favor certain ideological or religious perspectives, raising questions about equitable access and state neutrality
  • Corporate welfare concerns: Critics may view tax credits for business donations as corporate welfare that benefits entities already profitable enough to claim credits, while the actual charitable impact remains unclear

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

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