Veteran business benefits in Texas (2026)

Secretary of State filing fee waiver for new veteran-owned businesses

$300 formation fee waived, plus other Chapter 4 fees for 5 years

The Secretary of State waives all fees under Subchapter D, Chapter 4 of the Business Organizations Code for five years — not just the formation fee but amendments and other Chapter 4 filings too. The part that costs people money: you do not get this by ticking a box. You must file the Texas Veterans Commission verification letter and Comptroller Form 05-904 together with your formation documents, or the Secretary of State will simply charge you.

Who qualifiesEntity formed in Texas on or after 1 January 2022, owned 100% by natural persons who are each honorably discharged veterans. Under S.B. 524 (2025) each owner must also be a Texas resident and must not already own another entity receiving the exemption — one per veteran.

Source: Texas Business Organizations Code §12.005, enacted by S.B. 938 (87th Leg., 2021) · verified 2026-08-09

Five-year franchise tax exemption

Full franchise tax liability eliminated for 5 years, plus no report filing

A qualifying new veteran-owned business owes no Texas franchise tax for its first five years — and since S.B. 3 it does not even have to file the No Tax Due, Public Information, or Ownership Information reports during that window, for reports due on or after 1 January 2024. One obligation stays yours: if you stop qualifying mid-window you must tell the Comptroller. They will not work it out for you, and the exemption ends when you stop qualifying, not when you get round to mentioning it.

Who qualifiesFormed in Texas on or after 1 January 2022 (or between 1 January 2016 and 1 January 2020), owned 100% by honorably discharged veterans, each of whom supplies a Letter of Verification from the Texas Veterans Commission. S.B. 524 added Texas residency and the one-per-owner limit going forward.

Source: Texas Comptroller — New Veteran-Owned Businesses and Texas Franchise Tax (Tex. Tax Code §171.0005) · verified 2026-08-09

VetHUB certification — the HUB program is now service-disabled-veteran only

$0 certification cost

Texas restructured its Historically Underutilized Business program under emergency rules on 2 December 2025 and renamed it Veteran Heroes United in Business. It now focuses exclusively on service-disabled veterans, and certifications previously granted on the basis of race, ethnicity or sex were revoked unless the firm could prove service-disabled-veteran ownership. Permanent rules took effect 12 May 2026. Certification is free. The catch worth knowing: the fixed statewide percentage goals that used to sit in rule are gone — each agency now sets its own, so there is no single number to plan around.

Who qualifiesAt least 51% owned, managed and operated by one or more service-disabled veterans with a service-connected disability rating of at least 20%. Business must be primarily based in Texas and meet SBA size standards.

Source: Texas Comptroller — VetHUB Program FAQ (34 TAC ch. 20; Tex. Govt Code ch. 2161) · verified 2026-08-09

Occupational licence application and examination fee waiver

State licensing agencies must waive licence application and examination fees for qualifying service members, veterans and military spouses. Read the fine print before celebrating: it covers the application fee only. Other surcharges assessed at application are non-refundable, some fees are mandated by other statutes and cannot be waived, and it does not touch initial registration or renewals.

Who qualifiesA service member or veteran whose military service, training or education substantially meets the licence requirements, or who holds a current substantially equivalent licence in another jurisdiction. Veteran means discharged or released under conditions other than dishonorable.

Source: Texas Occupations Code §55.009 · verified 2026-08-09

Texas Veterans Commission verification letter

Every Texas veteran business tax and fee benefit runs through a Veteran Verification Letter from the Texas Veterans Commission, carrying a unique ID code for each owner. You request it through a TVC business consultant, who contacts you within 72 business hours to collect your DD-214 Member 4 or a VA benefits letter. The Comptroller's own instructions tell you to check your junk folder for mail from a tvc.texas.gov address, which tells you how often that step goes wrong.

Who qualifiesHonorably discharged veterans forming a Texas entity and seeking the fee waiver or franchise tax exemption. Every owner needs their own letter.

Source: Texas Comptroller — Verification Process for a New Veteran-Owned Business · verified 2026-08-09

The sunset was repealed — these benefits are permanent now

The single most important Texas fact for 2026. Under the original 2021 law, both the fee waiver and the franchise tax exemption were set to be repealed on 1 January 2026. S.B. 524 in the 2025 session repealed the repealers, effective 1 September 2025, so the program did not sunset. The Senate Research Center analysis lists the key provision as eliminating that expiration date, and notes more than 13,700 veteran-owned businesses had formed under the exemption. Any guide still warning you to hurry before it expires is describing a deadline that no longer exists.

Who qualifiesApplies to the same class of new veteran-owned businesses described above.

Source: Texas Senate Research Center — Bill Analysis, C.S.S.B. 524, 89th Legislature (2025) · verified 2026-08-09