Meaningful Tax Relief for Small Business Enacted

June 13, 2025 – Governor Greg Abbott recently signed legislation that significantly expands support for small businesses in Texas by slashing bureaucratic hurdles and offering major tax relief. These new laws build on the work of his Small Business Freedom Council, which he established last year to evaluate government efficiency and recommend ways to reduce unnecessary regulations that burden Texas businesses.

“The Texas economy is better than ever before,” said Governor Abbott. “This session, we took strategic steps to boost small businesses in Texas. Even the smallest of barriers can increase the cost of doing business. We want to make it easier and less costly for businesses in Texas, especially our small business owners.”

One of the most impactful measures is House Joint Resolution 1 / House Bill 9, authored by Representative Morgan Meyer and Senator Paul Bettencourt. The legislation raises the business personal property tax exemption from $2,500 to $125,000 — a staggering increase of nearly 5,000%. This substantial change is designed to relieve small and mid-sized businesses from paying taxes on essential equipment, machinery, and other tangible assets up to that new threshold.

Governor Abbott and legislative leaders say this reform is part of Texas’s ongoing effort to ensure the state remains one of the most attractive places in the country to start and grow a business. Supporters of the legislation argue it will allow business owners to reinvest more money into their companies, fueling growth and job creation.

The Governor emphasized that these tax cuts and regulatory rollbacks will help Texas entrepreneurs keep more of their hard-earned money while reducing the state’s administrative overhead. The changes reflect a broader strategy to bolster small business freedom, cut red tape, and maintain Texas’s competitive edge in the national economy.