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

🟡 SB 2018: Corporations steer tax dollars into chosen nonprofits

What it says it does:
SB 2018 sets up a “strong families credit” so businesses can get a tax break when they donate to certain nonprofits that provide family services. The program is capped at 5 million dollars per year statewide and runs until January 2029.

What it actually changes:
Instead of all franchise tax dollars going into the state treasury, up to 5 million a year can be redirected by private companies to certified nonprofits. The OneStar Foundation, not a state agency, decides which nonprofits qualify and can charge them fees.

Who is pushing for it:
Supporters listed in the files include the Baptist General Convention of Texas Christian Life Commission, Family First/All Pro Dad, Buckner International, the Texas Catholic Conference of Bishops, Texas Association of Goodwills, Family Resource Centers of Texas, TexProtects, United Way of Metropolitan Dallas, Christ’s Haven, and Methodist Children’s Home. The Comptroller’s office appeared as a resource witness.

Who benefits:
Large corporate taxpayers that apply quickly get to offset part of their taxes while boosting their preferred nonprofits. Established family service organizations that meet the narrow criteria gain a fundraising advantage. OneStar gains authority and fee income as the certifier.

Who gets left out or exposed:
Nonprofits that do not fit the bill’s narrow definitions, or that rely on state grants, are excluded. Smaller businesses or donors that apply late may find the annual cap already used up. Public education funding is indirectly pressured because lost revenue must be backfilled.

Why this matters long term:
This bill shifts control over part of the state’s budget from the legislature to corporations and a quasi-public foundation. It sets a precedent for tax-credit pipelines with limited audits and no appeals. Once built, these pipelines can be expanded in future sessions.

What to watch next:
Whether OneStar applies broad or narrow standards when certifying nonprofits, and how quickly large corporations claim the 5 million dollar cap each year. Also whether lawmakers propose expanding the credit or creating new ones for other policy areas.

Bottom line:
SB 2018 allows private donors to decide where public tax dollars go. It benefits a few large nonprofits and companies while reducing transparency and leaving general revenue to backfill schools.

#SB2018 #TexasPolicy #TexasTaxes #Nonprofits #WatchTheRules