Bill > SB524

This bill modifies Texas tax code provisions related to franchise tax and business filing requirements for veterans-owned businesses, primarily by removing specific exemptions and provisions that were previously established. Effective January 1, 2031, the bill eliminates special definitions and exceptions for veteran-owned businesses, such as changing how a business's "beginning date" is calculated and removing language about federal tax exemptions. The bill repeals several sections of the Business Organizations Code and Tax Code that previously provided unique considerations for veteran-owned businesses, including Section 171.0005 which defined new veteran-owned businesses. Specifically, the bill removes provisions that would have allowed veteran-owned businesses extended tax exemption periods or special calculation methods for their franchise tax obligations. The changes appear to standardize tax treatment across different types of businesses, effectively ending previously established preferential treatment for veteran-owned enterprises. The bill itself will take effect on September 1, 2025, with the substantive changes becoming operative on January 1, 2031, providing a significant lead time for businesses to prepare for these modifications.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB524