| 1 | 1 | | 89R7718 CJC-D |
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| 2 | 2 | | By: Middleton S.B. No. 1715 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an exemption from the franchise tax for certain |
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| 10 | 10 | | qualified space companies. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter B, Chapter 171, Tax Code, is amended |
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| 13 | 13 | | by adding Section 171.089 to read as follows: |
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| 14 | 14 | | Sec. 171.089. EXEMPTION: QUALIFIED SPACE COMPANY. (a) In |
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| 15 | 15 | | this section: |
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| 16 | 16 | | (1) "Qualified space company" means a corporation, |
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| 17 | 17 | | partnership, or other business entity primarily engaged in the |
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| 18 | 18 | | research, development, manufacturing, testing, or launching of |
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| 19 | 19 | | satellites, spacecraft, space vehicles, or related technologies |
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| 20 | 20 | | from locations in this state. |
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| 21 | 21 | | (2) "Satellite" means an artificial object and its |
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| 22 | 22 | | components that is intentionally placed into orbit around Earth or |
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| 23 | 23 | | another celestial body, including an object used to facilitate |
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| 24 | 24 | | communications, observe weather conditions, or carry scientific |
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| 25 | 25 | | instruments or observation platforms used for data collection, |
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| 26 | 26 | | broadcasting, or other services. |
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| 27 | 27 | | (3) "Spacecraft" means a vehicle or device and its |
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| 28 | 28 | | components designed for travel or operation in space, including a |
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| 29 | 29 | | crewed or uncrewed vessel used for exploration, transportation, |
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| 30 | 30 | | scientific research, communication, or defense purposes. |
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| 31 | 31 | | (4) "Space vehicle" means a vehicle or craft and its |
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| 32 | 32 | | components that is specifically designed to carry payloads, |
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| 33 | 33 | | satellites, equipment, or people into space, including a launch |
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| 34 | 34 | | vehicle, rocket, space shuttle, or other system used to transport |
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| 35 | 35 | | objects or people beyond the Earth's atmosphere. |
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| 36 | 36 | | (b) A qualified space company is exempted from the franchise |
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| 37 | 37 | | tax. |
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| 38 | 38 | | SECTION 2. Section 171.089, Tax Code, as added by this Act, |
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| 39 | 39 | | applies only to a report originally due on or after the effective |
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| 40 | 40 | | date of this Act. |
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| 41 | 41 | | SECTION 3. This Act takes effect January 1, 2026. |
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