SB 1731
Hinojosa Spaceport Bill Exempts Operators’ Whole Business From Franchise Tax
Died in committee
Verdict: Smells
Why it's charged
Carve-out
THE TEXT
“A corporation is exempted from the franchise tax if the corporation operates a spaceport:”
Bill text, introduced version (I)
The bill gives a full franchise tax exemption to one narrowly described kind of business: spaceport operators with a defense launch contract. The caption is honest about this narrow beneficiary, so the carve-out is disclosed rather than hidden.
Carve-outInitial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.
Caption from analyzed text · version I.
Summary
Run a licensed spaceport with a defense launch contract, owe no franchise tax at all!
The bill fully exempts a corporation from the Texas franchise tax if it operates a spaceport that is licensed by the Federal Aviation Administration and is critical to a Department of Defense contract for spaceflight or launch services. It reaches only the small set of companies that run a licensed spaceport and hold such a defense launch contract. Those companies would owe no franchise tax at all on reports due on or after September 1, 2025, and the exemption is not limited to their spaceport business.
Labels
Labels: NEVER GOT A HEARING. Filed Feb 27, 2025 and referred to the Senate Finance committee. No public hearing. The bill died.
Receipt
The receipt
89R-SB1731 · 2025-02-27
SOLD BY
+ 1 coauthor
ITEM
relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.
WHAT IT DOES
Run a licensed spaceport with a defense launch contract, owe no franchise tax at all!
The bill fully exempts a corporation from the Texas franchise tax if it operates a spaceport that is licensed by the Federal Aviation Administration and is critical to a Department of Defense contract for spaceflight or launch services. It reaches only the small set of companies that run a licensed spaceport and hold such a defense launch contract. Those companies would owe no franchise tax at all on reports due on or after September 1, 2025, and the exemption is not limited to their spaceport business.
CHARGES
[x] CARVE-OUTanalysis confidence 50%
THE TEXT
“A corporation is exempted from the franchise tax if the corporation operates a spaceport:”
Bill text, introduced version (I)
The bill gives a full franchise tax exemption to one narrowly described kind of business: spaceport operators with a defense launch contract. The caption is honest about this narrow beneficiary, so the carve-out is disclosed rather than hidden.
TOTAL
No fiscal note in the loaded record.
HISTORY
- Received by the Secretary of the Senate
- Filed
- Co-author authorized
- Read first time
- Referred to Finance
FILED UNDER
THE TEXT
“A corporation is exempted from the franchise tax if the corporation operates a spaceport:”
Bill text, introduced version (I)
The bill hands a total franchise tax exemption to companies in one industry, spaceport and launch operators with Defense Department contracts.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
CAMPAIGN PAID FOR BY
Donors
Not tied to this bill.
Sources
The author's campaign account only. Own money and internal transfers are separate on the member page.
Derived itemized flow · Oct 28, 2024 to May 5, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Texans for Lawsuit Reform PAC$100,000.00
Texans for Lawsuit Reform PAC
$100,000.00
- Cash
- $100,000.00
- Paid by others
- $0.00
- Total
- $100,000.00
Also funds 124 other sitting lawmakers.
Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamSources
Derived itemized flow · on Oct 28, 2024. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 100989239.
Greg Abbott Campaign$33,489.82
Greg Abbott Campaign
$33,489.82
- Cash
- $0.00
- Paid by others
- $33,489.82
- Total
- $33,489.82
Also funds 9 other sitting lawmakers.
Derived recipient stock · Oct 29, 2024 to Sep 2, 2026. State data as of Nov 4, 2026.
Name match, not a verified identity: normalized filed name and state.
TeamSources
Derived itemized flow · Oct 29, 2024 to Nov 12, 2024. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 100989239.
Missing data does not establish zero giving. Display amounts are rounded.
Texans for Lawsuit Reform PAC
$100,000.00
- Cash
- $100,000.00
- Paid by others
- $0.00
- Total
- $100,000.00
Also funds 124 other sitting lawmakers.
Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamSources
Derived itemized flow · on Oct 28, 2024. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 100989239.
Greg Abbott Campaign
$33,489.82
- Cash
- $0.00
- Paid by others
- $33,489.82
- Total
- $33,489.82
Also funds 9 other sitting lawmakers.
Derived recipient stock · Oct 29, 2024 to Sep 2, 2026. State data as of Nov 4, 2026.
Name match, not a verified identity: normalized filed name and state.
TeamSources
Derived itemized flow · Oct 29, 2024 to Nov 12, 2024. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 100989239.
Votes
No floor vote loaded for this bill.
Fiscal
No fiscal note in the loaded record.
How this was graded
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Sources
Texas Senate · Filed Feb 27, 2025
03/13/2025 S Referred to Finance
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
Senate committee · Finance · Final status: Died in committee
Companion
HB 3045 by Gerdes (identical)
Subjects
Corporations & Associations
Taxation--Franchise
SPACEPORTS
Text
The text as introduced · 155 words
89R9103 CJD-D By: Hinojosa of Nueces S.B. No. 1731 A BILL TO BE ENTITLED AN ACT relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 171, Tax Code, is amended by adding Section 171.089 to read as follows: Sec. 171.089. EXEMPTION-SPACEPORT USED FOR NATIONAL DEFENSE PURPOSES. A corporation is exempted from the franchise tax if the corporation operates a spaceport: (1) licensed by the Federal Aviation Administration; and (2) that is critical to the performance of a contract between the corporation and the United States Department of Defense to provide spaceflight or launch services to that department. SECTION 2. The change in law made by this Act applies only to a report originally due on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2025.