Bill > HB399

This bill proposes a new tax exemption for small businesses, specifically allowing newly incorporated businesses to be exempt from ad valorem taxation (property taxes) on income-producing tangible personal property for three years following their incorporation. The exemption applies only to small businesses as defined by the Government Code and applies to businesses that file a rendition statement. The tax exemption covers tangible personal property that is used or held for the purpose of generating income. This bill will only take effect on January 1, 2026, and is contingent upon voters approving a constitutional amendment that would authorize the legislature to create such an exemption. If the constitutional amendment is not approved by voters, the bill will have no effect. The exemption would apply to ad valorem taxes for tax years beginning on or after the effective date of the Act.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB399