Texas Comptroller of Public Accounts
Veteran-Owned Business Franchise Tax Exemption
Who's eligible
New Texas businesses that are 100% owned by one or more honorably discharged veterans. Must be formed in Texas. Applies to LLCs, corporations, and partnerships. HB 2358 (2022) restored and expanded the original 2015-2020 exemption.
How to claim
1. Form your entity in Texas. 2. File Form 05-904 (Certification of New Veteran-Owned Business) with the Texas Comptroller. 3. Provide DD-214 for each veteran owner. 4. Confirm 100% veteran ownership.
Editor's take
Any veteran planning to form a business in Texas. Even sole-owner LLCs. Free money if you qualify.
You are not forming in Texas, or you have a non-veteran co-founder with any equity. 100% veteran ownership is required.
Applies only to NEW entities formed during the eligibility period. Cannot retroactively apply to an existing Texas entity. Also: your business must remain 100% veteran-owned throughout the 5-year period.
One of the strongest state-level veteran business benefits in the country. Franchise tax is Texas's business income tax equivalent. Not applicable to sales tax or federal taxes. Renewed and expanded under HB 2358 in 2022 after the original 2015-2020 program ended.