Wins for Small Businesses as Texas Legislative Session Concludes

News Summary

The recent Texas Legislative Session has ended, marking significant advancements for small businesses. New laws include an increase in property tax exemption, a Texas Regulatory Efficiency Office, and expanded occupational licensing. These changes are set to relieve financial burdens and foster a more supportive environment for small business growth. While some critical issues remain unaddressed, the legislative victories demonstrate strong advocacy and engagement within the small business community. Texas continues to solidify its reputation as a favorable place for entrepreneurship.

Texas Legislative Session Formally Closes with Significant Wins for Small Businesses

The 2025 Legislative Session in Texas concluded on June 2, 2025, after 140 days dedicated to addressing critical issues impacting small businesses across the state. The National Federation of Independent Business (NFIB) tracked over 200 pieces of legislation during this session, resulting in many important victories for small businesses.

Among the key successes was the passage of House Bill 9, which increased the business personal property tax exemption from $2,500 to $125,000. This change applies to various items used in business, including inventory, furniture, machinery, and supplies, regardless of the profit status. If passed on the upcoming November ballot, this inventory tax relief proposal is anticipated to generate approximately $500 million in annual tax savings for small businesses.

The legislative session witnessed the successful defeat of several harmful proposed laws, while many priority bills favored by NFIB were passed. As a key highlight, NFIB held a productive Small Business Day, attended by over 100 small business owners and sponsors. The event emphasized the importance of active engagement from small business owners at the state Capitol, a sentiment echoed by House Speaker Dustin Burrows, an NFIB member.

Legislative Wins for Small Businesses

Several significant pieces of legislation were successfully enacted during this session to support the growth and sustainability of small businesses. Among them were:

• Senate Bill 14: This law established the Texas Regulatory Efficiency Office, aimed at reducing administrative burdens on small businesses.
• House Bill 5195: This proposal modernizes state agency systems and enhances accessibility to online services.
• House Bill 11: This law expands occupational licensing reciprocity, allowing out-of-state workers to gain easier access to employment opportunities in Texas.
• House Bill 138: This legislation aims to enhance transparency by enabling businesses to predict the cost impact of forthcoming legislative measures on private health coverage.
• Senate Bill 2610: This law establishes a cybersecurity safe harbor for small businesses, shielding them from certain legal damages in data breach lawsuits, provided they maintain a cybersecurity program.

Challenges and Future Efforts

Despite these achievements, not all proposed legislation saw success. Significant measures addressing credit card swipe fees and lawsuit abuses did not pass. As a result, NFIB will continue advocating for solutions to these issues in future legislative sessions, indicating ongoing efforts to tackle challenges faced by small businesses in Texas.

Background Context

The NFIB played a pivotal role in the legislative process, co-chairing Governor Abbott’s Small Business Freedom Council to gather valuable feedback from small business owners regarding regulatory burdens. The insights from this council guided legislative priorities aimed at fostering an economic environment conducive to small business growth.

Overall, NFIB Texas celebrates significant victories in securing tax relief and reducing regulatory hurdles. The organization acknowledges the vital participation of its members who actively engaged with legislators and attended hearings to amplify the voice of small businesses in Texas.

The successful legislative session marks a progressive step towards bolstering the small business landscape in Texas, laying a foundation for future initiatives aimed at further supporting and empowering entrepreneurs across the state.

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