Texas HB2740 provides a franchise tax credit for entities offering paid parental leave to employees.

HB2740 amends the Texas Tax Code to introduce a tax credit for entities that provide paid parental leave to their employees. Eligible entities must offer at least eight weeks of leave for birthing parents, four weeks for non-birthing parents, and four weeks for adoption or placement of an infant. The credit amount is determined by the lesser of the actual costs incurred or the franchise tax due after other credits. The comptroller must collect and publish data on credits claimed annually. The credit applies to tax reports due after the bill's effective date of January 1, 2026.

Texas HB2740 provides a franchise tax credit for entities offering paid parental leave to employees.

HB2740 amends the Texas Tax Code to introduce a tax credit for entities that provide paid parental leave to their employees. Eligible entities must offer at least eight weeks of leave for birthing parents, four weeks for non-birthing parents, and four weeks for adoption or placement of an infant. The credit amount is determined by the lesser of the actual costs incurred or the franchise tax due after other credits. The comptroller must collect and publish data on credits claimed annually. The credit applies to tax reports due after the bill's effective date of January 1, 2026.