BILL ANALYSIS

C.S.H.B. 3045

By: Gerdes

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the current franchise tax may place Texas-based spaceports at a competitive disadvantage compared to other states that offer financial incentives. C.S.H.B. 3045 seeks to strengthen Texas' role in the commercial space sector and enhance national security by providing a franchise tax exemption for corporations that operate certain spaceports.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 3045 amends the Tax Code to exempt from the franchise tax a corporation that is an operator of a spaceport authorized by the Federal Aviation Administration (FAA) and that has a contract with the U.S. Department of Defense (DOD) to provide spaceflight or launch services to the DOD.

C.S.H.B. 3045 applies only to a report originally due on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 3045 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

While both the substitute and the introduced exempt from the franchise tax a corporation operating a spaceport used for national defense purposes, the introduced exempted a corporation operating a spaceport licensed by the FAA that is critical to the performance of a contract between the corporation and the DOD to provide spaceflight or launch services to the DOD, whereas the substitute exempts a corporation that is an operator of a spaceport authorized by the FAA and that has a contract with the DOD to provide such services.