Regular Session
Government Affairs & Regulatory Compliance Analysis
SB2018 creates a limited, first-come, first-served tax credit against the Texas Franchise Tax for businesses contributing to certified "Strong Families" organizations, effective June 1, 2026. Because the statewide cap is set at a low $5 million annually, businesses must treat this not as standard philanthropy, but as a competitive race requiring precise timing of donations and immediate electronic filing to secure the credit.
Sen. Angela Paxton·Senate Bill·Regular Session
Comptroller of Public Accounts • OneStar Foundation
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2026-06-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Standard donation letters are insufficient. You must draft a Designated Contribution Agreement that:
The following discrepancies between the Legislative Budget Board analysis and the Bill text require close monitoring of Comptroller rulemaking:
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about SB2018
SB2018 creates a limited, first-come, first-served tax credit against the Texas Franchise Tax for businesses contributing to certified "Strong Families" organizations, effective June 1, 2026. Because the statewide cap is set at a low $5 million annually, businesses must treat this not as standard philanthropy, but as a competitive race requiring precise timing of donations and immediate electronic filing to secure the credit.
SB2018 was authored by Texas Senator Angela Paxton during the Regular Session.
SB2018 was signed into law by Governor Greg Abbott on June 20, 2025.
SB2018 is enforced by Comptroller of Public Accounts and OneStar Foundation.
The regulatory priority for SB2018 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2018 is estimated as "low". This may vary based on industry and implementation requirements.
SB2018 addresses topics including charitable & nonprofit organizations, family, family--parent & child, taxation and taxation--franchise.
Key dates for SB2018: Effective date is 2026-06-01. Rulemaking: Adopt rules prescribing the application process, including electronic filing requirements and the first-come, first-served allocation method. (Prior to 2026-06-01); Consult with OneStar Foundation to determine demonstration of eligibility for organizations. (Discretionary). Consult with legal counsel regarding applicability.
SB2018 establishes the following penalties: criminal penalty of Perjury penalties (varies) for Officer of an organization signing a false statement regarding eligibility criteria or compliance.; administrative penalty of Revocation of eligibility for Organization fails to meet criteria, fails to submit annual data, or spends >5% on admin expenses.. Consult with legal counsel for specific applicability to your situation.
SB2018 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
