The exemption from the franchise tax and certain filing fees for eligible, new veteran owned businesses was made permanent by in the last legislative session (SB 938 Enrolled [PDF]).
“With this being made permanent, there is no longer any pressing deadlines to register business,” said TVC Veteran Entrepreneur Program (VEP) Director and Army veteran Megan Tamez.
To be eligible, business owners must first certify veteran status through TVC VEP. Once the VEP verifies a veteran’s honorable discharge, a Veteran Verification Letter (VVL) is provided to the veteran. The VVL is required by the Texas Comptroller to be exempt from certain taxes and fees for a period of time.
TVC VEP shares the following information about VVLs:
- The VVL may be used more than once
- The VVL is valid for 5 years from the date issued
- 5 years + 1 day, the veteran must request a new VVL
To qualify as a “new veteran-owned business” under the provisions of Senate Bill 938, an entity must:
- Be formed or organized in Texas on or after January 1, 2022, and
- Be 100 percent (wholly owned) by one or more individuals, with each owner in receipt of a VVL showing verification of an honorable discharge from a branch of the U.S. Armed Services.
