With a deep understanding of your business alongside clear and honest communication, we help clients face challenges fearlessly.
Learn more about our services and how we help clients.
June 17, 2025
The 89th Texas legislature adjourned sine die in early June. While none of the bills in our January update were signed into law, there are new laws affecting business owners and corporations. Here’s a quick overview:
Get an update on the 2025 Texas legislative session 2025
Learn more about bills impacting business
Determine if your business needs to take action
Texas Business Organizations Code Updated for Efficiency and Business Autonomy
Effective September 1, 2025, Senate Bill 2411 amends the Texas Business Organizations Code to expand exculpation of officers from monetary liability (with exceptions), streamline approval of major business transactions by allowing documents in substantially final form, clarify that the new Texas business courts have jurisdiction over certain disputes, modernize procedures for ratifying corporate acts, and update formation and governance processes. These changes promote legal certainty, efficiency, and business autonomy in Texas.
Texas Business Courts Get a Bolster
House Bill 40 refines the Texas Business Courts established in 2023 by clarifying jurisdiction, procedures, and appeals processes. It ensures complex business cases, like mergers, contract disputes, and shareholder issues, are handled by specialized judges. This improves consistency, speeds up litigation, and reduces uncertainty for businesses. By enhancing legal infrastructure, HB 40 strengthens Texas’s appeal as a business-friendly state, supporting growth, investment, and confidence in how high-stakes commercial disputes are resolved.
AI Responsibility and Governance
House Bill 1709, the Texas Responsible Artificial Intelligence Governance Act, establishes guardrails for the use of high-risk artificial intelligence systems in Texas, particularly those affecting decisions in areas like employment, housing, healthcare, and legal services. It prohibits algorithmic discrimination, mandates transparency, and requires annual impact assessments. For businesses, this means stricter compliance obligations, especially for those deploying AI in critical functions. While increasing administrative responsibilities, the law aims to build trust in AI technologies and reduce liability risks across sectors.
Property Tax Relief for Business Owners
House Bill 9 increases the exemption for business inventory (business personal property) from $2,500 to $125,000, meaning businesses will not pay property taxes on inventory valued up to $125,000 by any taxing entity, including school districts, cities, and counties. This measure is part of a broader property tax relief package passed by the Texas Legislature in 2025 and will take effect if approved by voters in November.
Tax Credits for R&D Increase
Senate Bill 2206 establishes a new, permanent franchise tax credit structure for research and development in Texas. It increases the credit rate from 5% to 8.722% of qualified research expenses, and up to 10.903% for R&D activities conducted in partnership with Texas higher education institutions. The bill eliminates the sales tax exemption option, streamlines administration by aligning with federal IRS standards (Form 6765), and caps credits at 50% of franchise tax liability. These reforms are designed to simplify compliance, encourage greater private-sector R&D investment, foster industry-academic collaboration, and ensure Texas remains competitive in innovation and job creation.
Nuclear Energy for Investment, Grid Reliability
House Bill 14 establishes the Texas Advanced Nuclear Energy Office within the governor’s office to support and develop the nuclear energy industry, including advanced nuclear reactor deployment and related workforce initiatives. By fostering innovation and streamlining regulatory support, HB 14 positions Texas as a leader in advanced nuclear technology, attracts investment, and enhances grid reliability, benefiting the state’s energy sector, economy, and job market.
Easy Compliance for Small Businesses and Employers
Senate Bill 14 modernizes regulations and reduces red tape for small businesses and employers. It reforms how state agencies adopt rules and impose regulatory requirements, streamlining rulemaking procedures, increasing transparency, and requiring a centralized, searchable online database of state regulations by business type and NAICS sector. This modernization aims to make compliance easier and reduce bureaucratic burdens for small businesses and employers across Texas.
Minimal Rezoning for Development
Senate Bill 840 requires large Texas cities (those with populations over 150,000 in counties of at least 300,000) to allow apartments and mixed-use developments on sites currently zoned for commercial uses such as retail, office, or warehouse, without the need for rezoning. This “by-right” approval streamlines the development process, lowers costs, and aims to address Texas’s significant housing shortage by making it easier and faster to convert underutilized commercial properties into residential units.
Navigating potential legislative changes can be complicated. We’re available to assist you in understanding how these bills could affect your business and to provide the legal counsel necessary for success in this evolving landscape. As your business allies, we’re dedicated to transforming legislative hurdles into strategic opportunities.