HB 3045 – Corporate Welfare

HB 3045 creates a new corporate tax exemption for companies that run spaceports tied to national defense contracts. While well intentioned to promote space-related investment, the bill offers a complete franchise tax exemption to qualifying corporations. The bill is framed as a necessary measure to compete with other States, but as recent history has demonstrated, Texas is already attractive to these companies based on Texas’ business friendly environment, population talent and resources. The bill would drain millions from the Property Tax Relief Fund and require backfilling with general revenue—effectively shifting the tax burden to other Texans. It undermines tax neutrality by favoring specific industries over others and invites special-interest carveouts in the tax code. Taxpayers should not subsidize corporations with permanent handouts that weaken the overall tax base.