Texas Governor Greg Abbott signed three bills into law on 14 May 2025, introducing tax incentives for businesses and securities market operators.
Texas Governor Greg Abbott signed three bills into law on 14 May 2025, offering tax incentives for businesses and securities market operators. These bills include a franchise tax exemption, bans on specific transactions, and occupation taxes.
Senate Bill 29: This bill codifies the business judgment rule and reforms derivative claims processes. It also creates a mechanism to pre-assess corporate director independence. Senate Bill 29 took effect immediately upon being signed by the Governor.
Senate Bill 1058: This bill creates a franchise tax exemption for stock exchanges operating in Texas for certain tax liabilities. Senate Bill 1058 will apply to eligible registered securities market operators starting 1 January 2026.
House Joint Resolution 4: This bill establishes a constitutional ban on stock exchange transactions and occupation taxes. House Joint Resolution 4, which proposes this amendment, will be presented to Texas voters during the election on 5 November 2025.
The bills were approved by both the Texas’ House and Senate.
