An entity formed on or after Jan. 1, 2020 cannot qualify as a new veteran-owned business, eligible for the franchise tax exemption. The provision has expired. A new veteran-owned business that first qualified before Jan. 1, 2020, continues to qualify.
A qualifying new veteran-owned business is not subject to franchise tax for its initial five-year period, but must file Form 05-163, Texas Franchise Tax No Tax Due Report (PDF), for each of those years. For more information, see Texas Tax Code Section Section 171.0005, Definition of New Veteran-Owned Business and Rule 3.574, Margin: New Veteran-Owned Businesses.
To be considered a new veteran-owned business, an entity must:
The Comptroller’s office verifies this information. If during the initial five-year period, a new veteran-owned business no longer meets the above criteria, the business:
For your new veteran-owned business to qualify for the five-year franchise tax exemption, you must complete three steps. Here are the steps to follow:
To receive a Letter of Verification of Veteran’s Honorable Discharge (which will include a unique alpha-numeric identification code), each veteran-owner must email a request, along with their Department of Defense Form 214 (DD214), to the TVC at firstname.lastname@example.org. Please block out the Social Security number on the DD214 before emailing.
Each emailed request must include:
Once all owners have received their Letter of Verification of Veteran’s Honorable Discharge from the TVC, complete Comptroller Form 05-904, Certification of New Veteran-Owned Business (PDF).
You must enter each owner’s:
Use as many pages as necessary to identify 100 percent ownership in the business.
A veteran-owned business must either form with the Secretary of State (SOS) or register with the Comptroller’s office. Please use the instructions below to complete Step 3.
Documents may be sent to:Secretary of State
Contact the SOS at 512-463-5555 for filing assistance.
If you formed, or are forming, a new veteran-owned business as any other entity type that is subject to franchise tax, you must file these documents with the Comptroller’s office:
Documents may be sent to:Comptroller of Public Accounts
Contact the Comptroller’s office at 512-463-4402 for assistance.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.