Bill > HB1671

This bill provides an exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state. Specifically, it: 1. Exempts new veteran-owned businesses, defined as businesses where each owner is a veteran who has been honorably discharged from the U.S. armed forces, from franchise tax for up to 5 years or until the business no longer qualifies as a new veteran-owned business. 2. Waives all fees imposed by the Secretary of State for an entity that is a new veteran-owned business until the earlier of the 5th anniversary of the entity's formation or the date it ceases to qualify as a new veteran-owned business. 3. Extends the "beginning date" for calculating the franchise tax for new veteran-owned businesses to the earlier of the 5th anniversary of the business starting operations in Texas or the date it no longer qualifies as a new veteran-owned business. The provisions related to the tax exemption and fee waiver for new veteran-owned businesses are set to expire on January 1, 2026, but existing businesses that previously qualified will continue to be governed by the law as it existed prior to that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=87R&Bill=HB1671