Texas 2021 - 87th Regular

Texas House Bill HB1671

Caption

Relating to 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.

Impact

The introduction of HB 1671 represents a significant shift in state policy regarding economic incentives for veterans. By removing financial burdens associated with starting a business, this legislation envisions a more favorable climate for veteran entrepreneurs. It acknowledges the unique challenges that veterans may face when transitioning to civilian life and aims to ease barriers to entry into the commercial sector. Furthermore, this bill could contribute to job creation and increase the overall economic contribution of veteran-owned enterprises in Texas.

Summary

House Bill 1671 aims to support new businesses owned by veterans by providing exemptions from franchise taxes and certain filing fees during the initial period of operation within the state of Texas. Specifically, this bill stipulates that the secretary of state will waive applicable fees for entities qualifying as new veteran-owned businesses until they reach their fifth anniversary or cease to qualify under the defined terms. This is intended to facilitate the establishment of businesses by veterans, thereby promoting economic growth and empowerment within this demographic.

Contention

During discussions around the bill, points of contention may arise regarding the sustainability of such tax exemptions and their potential impact on state revenue. Critics may argue that while the intent is to support veterans, the long-term financial implications for the state could be detrimental, especially considering the need for consistent funding of public services. Additionally, there may be debates about the specific criteria used to define 'new veteran-owned businesses,' as this could influence which businesses benefit from the exemptions and whether certain veteran groups might be inadvertently excluded.

Companion Bills

TX SB938

Same As Relating to 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.

Previously Filed As

TX HB3599

Relating to an exemption from certain motor fuel taxes for, and registration fees for motor vehicles owned by, certain nonprofit food banks.

TX SB5

Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.

TX SB3

Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.

TX HB3

Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.

TX HB38

Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.

TX SB1

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX SB26

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX HB3104

Relating to the temporary exemption of certain tangible personal property related to certain connected data center projects from sales and use taxes.

TX SB1265

Relating to the temporary exemption of certain tangible personal property related to certain connected data center projects from sales and use taxes.

TX HB1058

Relating to a franchise or insurance premium tax credit for certain housing developments.

Similar Bills

TX SB938

Relating to 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.

TX SB1049

Relating to 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.

TX HB2111

Relating to 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.

TX SB524

Relating to the exemption from the franchise tax and certain filing fees for certain businesses owned by veterans.

TX HB1923

Relating to the exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.

TX SB1481

Relating to the exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.

TX HB2938

Relating to the federal tax provisions applicable to the computation of the franchise tax.

TX HB803

Relating to a temporary exemption from the sales and use tax and the franchise tax for certain businesses engaged in space flight activities.