Senate Bill No. 1731 proposes a franchise tax exemption for corporations that operate spaceports specifically for national defense purposes. The bill introduces a new section, 171.089, to the Tax Code, which stipulates that a corporation will be exempt from the franchise tax if it operates a spaceport that is licensed by the Federal Aviation Administration and is essential for fulfilling a contract with the United States Department of Defense for spaceflight or launch services.

The provisions of this bill will only apply to reports that are originally due on or after its effective date, which is set for September 1, 2025. This legislation aims to encourage the development and operation of spaceports that support national defense initiatives by providing financial relief through tax exemptions.

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