One of the Most Pro-Business Legislative Sessions in Texas History
Yesterday, Governor Abbott signed several important new pieces of pro-business legislation into law, including a massive increase to the inventory tax exemption for businesses to $125,000 – 50 times the previous amount (HB 9), which voters will have an opportunity to enshrine in the Texas Constitution in the upcoming November Election (HJR 1). Alongside HB 9, he also signed legislation that enhances flexibility for filing fees that businesses pay to the Texas Secretary of State when submitting official documents (HB 346), and a new law that requires state agencies to assess the modernization of their web sites to make it easier to do business in Texas (HB 5195).
While these reforms alone are enough to cause celebration among the Texas business community, they represent only a handful of wins within what is turning out to be one of the most pro-business Texas legislative sessions in recent memory, perhaps even in Texas history!
Throughout the session, The Texas Association of Business (TAB) worked overtime to ensure that the Texas lawmakers prioritized passing legislation that supported our pro-business, pro-jobs environment.
In a major win for Texas employers and innovators, the 89th Texas Legislature passed SB 2206 to establish a permanent R&D tax credit now more accessible to entrepreneurs and small businesses. This development is key to giving businesses the certainty they need to invest in new ideas, technologies, and high-paying jobs right here in the Lone Star State, and we are thrilled that Governor Abbott is expected to sign SB 2206 into law in the coming weeks.
Just before the end of this year’s legislative session, Governor Abbott signed SB 29 – also known as “DExit” – into law. This critical legislation will codify the business judgement rule, reforming derivative claims processes and cutting regulatory red tape for businesses seeking to incorporate into the Lone Star State.
TAB also strongly championed the passage of SB 2337, which requires greater transparency from proxy advisory firms and helps bolster investor confidence and promotes stronger corporate governance, helping ensure a fairer and more accountable business environment.
The ‘Texas Miracle’ is rooted in a strong workforce, and the passage of SB 1786 reaffirms that legacy by expanding dual credit access and improving transfer pathways to Texas’ private and independent universities. It further modernizes the definition of ‘credentials of value’ to align education with workforce demands, ensuring Texas stays ahead.
Texas families are currently facing a ‘Texas-sized’ healthcare Mandate problem, with rising costs straining household budgets. HB 138, which we strongly supported, creates a partnership with UTHealth Houston to provide data-driven analysis of proposed insurance mandates –empowering smarter, cost-effective policymaking across the state.
Alongside our healthcare challenges, Texas is also facing a mounting strain on our water infrastructure. TAB was proud to lead over 100 business organizations across the state to form the Texas Water Fund Coalition, which helped push through SB 7 – delivering an immediate $2.5 billion investment into our water infrastructure and a coordinated, long-term strategy to water supply planning, ensuring we can meet the needs of both businesses and communities across the state. In November, Texas voters will have the opportunity to vote on HJR 7 – a proposed constitutional amendment that will permanently dedicate funding to the Texas Water Fund and ensure sustained investment in our state’s water infrastructure to support businesses and residents alike.
Earlier this year, TAB conducted a poll that highlighted the growing concern over housing affordability and supply, particularly in the Dallas-Fort Worth metroplex. Recognizing this growing concern, lawmakers passed SB 15 and SB 840– bills that TAB supported to cut restrictive zoning barriers and development regulations, reduce red tape and accelerate housing development to meet the rising statewide demand.
Texas also continues to lead on the global stage in technology and innovation – from SpaceX to semiconductors – because we defend the policies that make that leadership possible. Through our Tech Means Business Coalition, we strongly supported HB 150, creating the Texas Cyber Command to safeguard critical infrastructure and ensure the state’s continued dominance in this vital sector. Last week, Governor Abbott signed HB 150 into law, establishing the Texas Cyber Command in San Antonio – which is home not only to one of the largest military communities in the nation, but also the largest concentration of cybersecurity professionals in the nation outside of Washington, D.C.
Texas’ innovation economy was further accelerated through the passage of SB 1198, which designates spaceports as critical infrastructure – extending key legal protections to operational and in-development sites. This strategic move reinforces the state’s commitment to the aerospace sector, enhances the security of spaceport operations and strengthens Texas’ position as a premier hub in the global space economy.
As the energy capital of the world, Texas must meet rising demand with an all-of-the-above-and-below strategy. Backed by the TAB-commissioned Aurora Energy Study, lawmakers took bold action this session to secure our leadership in the “nuclear renaissance,” passing HB 14, which launches the Texas Advanced Nuclear Program to fuel the next generation of energy innovation with Texas-made solutions and talent.
In today’s interconnected economy, global partnerships are essential, and with HCR 90 establishing a Texas Trade and Investment Office in Israel, Texas is making a strategic investment in its economic future. Strengthening ties with Israel, a natural partner in innovation, is a major win for driving investment, expanding competitiveness and advancing our global leadership.
Importantly, TAB also worked diligently to positively amend or stop proposals that would adversely affect taxpayers, increase the cost of doing business and infringe upon the freedoms of employers.
We strongly opposed efforts to impose costly mandates on health care plans that would have driven up health care costs for Texas employers and workers. Through unified advocacy –including a statewide business coalition – TAB helped defeat these proposals, preserving the integrity of employer-sponsored health care and securing a key win for affordability.
TAB and our allied energy stakeholders also relied on the critical data in our studies to defeat several harmful proposals this session that would have limited renewable energy production, putting us at a strategic disadvantage to increase our power generation capacity at a time when we need all that we can get.
Overall, the 89th Texas Legislative Session produced a variety of historic wins for our businesses. We are proud to continue working with lawmakers, local government leaders, business leaders, and experts from across the state to ensure that Texas remains wide open for business – and stronger than ever – in the years to come.
To read TAB’s full 89th Legislative Recap, click here.
–Glenn Hamer, President & CEO, Texas Association of Business
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