HB5490 Summary

• Eliminates franchise tax payments for domestic and foreign corporations on or after January 1, 2025, with no refunds or proration allowed for taxes that would have been due on that date or later.

• Increases the tax exemption to $5,000 for the period from January 1, 2024 through December 31, 2024 (previously $1,000), before eliminating the tax entirely.

• Requires transfer of all remaining amounts in the Corporate Franchise Tax Refund Fund to the General Revenue Fund by December 31, 2025.

• Repeals Section 15.35 (franchise taxes for domestic corporations), Section 15.65 (franchise taxes for foreign corporations), and Section 15.97 (the Refund Fund) effective January 1, 2026.

• Takes effect immediately upon enactment.