TX HB2740

Creates a franchise tax credit for Texas businesses that provide paid parental leave to employees, requiring at least 8 weeks of paid leave for employees giving birth, 4 weeks for non-birthing parents (including surrogacy), and 4 weeks for adoption or foster placement of infants under one year old

Tiered credit structure based on company size: 100% of paid leave wages for employers with 500 or fewer Texas-based employees, 50% for employers with 501-1,499 employees, and 10% for employers with 1,500 or more employees

Credit amount cannot exceed the franchise tax owed after applying all other applicable credits, and can only be claimed for paid parental leave provided during the accounting period covered by the tax report

Requires the comptroller to publish annual data by December 31 on the total credits claimed and the total number of Texas employees who received paid parental leave under the program

Takes effect January 1, 2026, applying to tax reports originally due on or after that date