LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 5, 2025 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3045 by Gerdes (Relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3045, As Introduced: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($2,920,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund3042026($780,000)2027($2,140,000)2028($3,000,000)2029($3,890,000)2030($4,670,000) Fiscal AnalysisThe bill would add an exemption from the Texas franchise tax for spaceports used for national defense purposes. The bill would exempt a corporation from the franchise tax if the corporation operates a spaceport that is licensed by the Federal Aviation Administration and that is critical to the performance of a contract between the corporation and the United States Department of Defense to provide spaceflight or launch services to that department.The bill would take effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 5, 2025
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3045 by Gerdes (Relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3045 by Gerdes (Relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3045 by Gerdes (Relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.), As Introduced
HB3045 by Gerdes (Relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3045, As Introduced: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($2,920,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3045, As Introduced: an impact of $0 through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($2,920,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($2,920,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
General Revenue-Related Funds, Five- Year Impact:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($780,000)
2027 ($2,140,000)
2028 ($3,000,000)
2029 ($3,890,000)
2030 ($4,670,000)
Fiscal Analysis
The bill would add an exemption from the Texas franchise tax for spaceports used for national defense purposes. The bill would exempt a corporation from the franchise tax if the corporation operates a spaceport that is licensed by the Federal Aviation Administration and that is critical to the performance of a contract between the corporation and the United States Department of Defense to provide spaceflight or launch services to that department.The bill would take effect September 1, 2025.
Methodology
According to the Comptroller, this estimate is based on what taxable entities who meet the definition currently pay in franchise tax, extrapolated forward to reflect expected growth and expiration of the credit for research and development expenditures.Because the bill exempts a corporation that operates a spaceport from franchise tax, rather than excluding from revenue for franchise tax purposes only revenue derived from spaceport activity, the cost for the exemption could be substantially greater than the estimate below, were a corporation principally engaged in other lines of business to acquire an operator of an FAA licensed spaceport.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD