Relating to the exemption from the franchise tax and certain filing fees for certain businesses owned by veterans.
SB 524 repeals three specific provisions from a previous law (S.B. 938, 2021) that would have exempted veteran-owned businesses from franchise tax and certain filing fees starting January 1, 2026. The bill cancels these planned exemptions, meaning veteran-owned businesses will not receive the tax relief originally scheduled under the repealed sections. This change takes effect September 1, 2025, before the previous exemptions were set to begin. The bill directly affects businesses owned by veterans in Texas that would have qualified for the repealed tax benefits.
Bill status
passed
3 of 5 stages cleared
Introduction
Dec 2024
Committee Review
May 2025
Senate Passage
May 2025
House Passage
Governor
Introduced Dec 4, 2024
Last action May 21, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Engrossed
·
4 edits
·
May 19, 2025
MODERATE
This bill updates the Texas franchise tax exemption for veteran-owned businesses by repealing previous temporary provisions and establishing permanent rules effective January 1, 2031. The changes clarify how the 'beginning date' is calculated for veteran-owned businesses and modify how federal tax exemption withdrawals affect franchise tax liability.
Scope change
The bill transitions from temporary provisions (effective 2026) to permanent provisions (effective 2031) for veteran-owned business tax exemptions.
TIMELINE
Changed effective dates from September 1, 2025 and January 1, 2026 to January 1, 2031 for all new provisions.
DEFINITION
Updated the definition of 'beginning date' to include special rules for veteran-owned businesses, calculating it as either the fifth anniversary of starting business or when the business ceases to qualify as veteran-owned.
ELIGIBILITY
Repealed temporary sections that amended veteran-owned business tax provisions, replacing them with permanent statutory language.
REQUIREMENT
Modified how franchise tax liability begins when a corporation loses its federal tax exemption, with special provisions for veteran-owned businesses.
Floor votes
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
26
Key actions
7
Committee
6
Amendments
3
May 21, 2025
Committee
Referred to Ways & Means
lower
May 21, 2025
Introduced
Read first time
lower
May 20, 2025
Introduced
Received from the Senate
lower
May 19, 2025
Upper · Passed
Passed
upper
May 19, 2025
Upper · Passed
Passed to engrossment as amended
upper
May 19, 2025
Upper · Passed
Amended
upper
May 19, 2025
Introduced
Amendment(s) offered
upper
May 15, 2025
Upper · Passed
Committee report printed and distributed
upper
May 15, 2025
Upper · Passed
Reported favorably as substituted
upper
May 14, 2025
Upper · Passed
Vote taken in committee
upper
May 14, 2025
Upper · Passed
Testimony taken in committee
upper
Feb 3, 2025
Committee
Referred to Finance
upper
Feb 3, 2025
Introduced
Read first time
upper
1 primary · 4 co-sponsors
Sponsors
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