The bill, S.B. No. 1715, proposes an exemption from the franchise tax for certain qualified space companies in Texas. It introduces a new section, 171.089, to the Tax Code, defining a "qualified space company" as a business entity primarily engaged in the research, development, manufacturing, testing, or launching of satellites, spacecraft, space vehicles, or related technologies from locations within the state. The bill also provides definitions for key terms such as "satellite," "spacecraft," and "space vehicle," outlining their specific characteristics and purposes.

The exemption from the franchise tax will apply to qualified space companies and is set to take effect on January 1, 2026, specifically for reports originally due on or after that date. This legislative change aims to support and promote the growth of the space industry in Texas by alleviating tax burdens on companies involved in this sector.

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