The bill, S.B. No. 1731, proposes an amendment to the Texas Tax Code by adding a new section, 171.089, which establishes a franchise tax exemption for corporations that operate spaceports for specific national defense purposes. To qualify for this exemption, the spaceport must be licensed by the Federal Aviation Administration and deemed critical for fulfilling a contract between the corporation and the United States Department of Defense for providing spaceflight or launch services.

The provisions of this bill will only apply to reports that are originally due on or after the effective date of the Act, which is set for September 1, 2025. This legislation aims to support and incentivize corporations involved in national defense-related space operations by alleviating their tax burdens.

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