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 is intended to support the growth of the space industry in Texas, encouraging investment and innovation in this sector. The provisions of this new section will apply only to reports originally due on or after the effective date of the Act, which is set for January 1, 2026.

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