AUSTIN – A bill by Rep. Harvey Hilderbran (Kerrville) would promote small business development in Texas by permanently extending the franchise tax exemption for companies that earn less than $1 million a year.
“This bill is about protecting small businesses, because they are responsible for creating the vast majority of new jobs in the state,” Hilderbran said. “Small businesses are the lifeblood of our economy, and freedom from over-taxation will encourage more business growth and further economic development for the state.”
Nearly 40,000 small businesses across the state benefit from the exemption, which the Texas Legislature approved in 2009. However, the current exemption is set to expire in January 2012 for businesses earning more than $600,000 a year.
“Our positive business climate and sound fiscal policies, including the franchise tax exemption for small businesses, has helped shield Texas from the worst part of the economic storm that hit the nation last year,” Hilderbran said. “As a result, Texas consistently places high on rankings of the best state for small businesses.”
The U.S. Department of Commerce reported that, in 2010, Texas created more jobs than any other state in the nation, and that it achieved a job growth rate almost double that of any other top ten state. The Wall Street Journal credited the state’s low taxes and employer-friendly environment with helping make Texas the “job creation capital” of the nation.
Newsweek described Texas as the top destination for job-seeking Americans, and just last year the Small Business and Entrepreneurship Council ranked Texas as one of the best states for small businesses.
“Texas continues to out-perform its neighbors because of strong, proven economic policies such as the franchise tax exemption for small businesses,” Hilderbran said. “Establishing this exemption as one that is permanent will help keep Texas as the top.”
Contact: Isaac Albarado
Room CAP GW.12, Capitol
P.O. Box 2910
Austin, TX 78768
(512) 463-1449 Fax
125 Lehmann Drive
Kerrville, TX 78028
(830) 792-4289 Fax