Section 171.001 - [Effective Until 1/1/2026] Tax Imposed(a) A franchise tax is imposed on each taxable entity that does business in this state or that is chartered or organized in this state.(b) The tax imposed under this chapter extends to the limits of the United States Constitution and the federal law adopted under the United States Constitution.(c) The tax imposed under this section or Section 171.0011 is not imposed on an entity if, during the period on which the report is based, the entity qualifies as a passive entity as defined by Section 171.0003.(d) Notwithstanding Subsection (a), the tax imposed under this chapter is not imposed on a taxable entity that qualifies as a new veteran-owned business as defined by Section 171.0005 until the earlier of: (1) the fifth anniversary of the date on which the taxable entity begins doing business in this state; or (2) the date the taxable entity ceases to qualify as a new veteran-owned business as defined by Section 171.0005. Amended by Acts 2021, Texas Acts of the 87th Leg. - Regular Session, ch. 859,Sec. 5, eff. 1/1/2022.Amended by Acts 2015, Texas Acts of the 84th Leg. - Regular Session, ch. 329,Sec. 9, eff. 1/1/2020.Amended by Acts 2015, Texas Acts of the 84th Leg. - Regular Session, ch. 329,Sec. 4, eff. 1/1/2016.Amended By Acts 2006, 79th Leg., 3rd C.S., Ch. 1, Sec. 2, eff. 1/1/2008.Amended By Acts 2007, 80th Leg., R.S., Ch. 1282, Sec. 5, eff. 1/1/2008.Amended By Acts 2003, 78th Leg., ch. 209, Sec. 31, 32, eff. 10/1/2003.Amended By Acts 1999, 76th Leg., ch. 184, Sec. 1, eff. 1/1/2000Amended By Acts 1997, 75th Leg., ch. 1185, Sec. 1, eff. 1/1/1998Amended By Acts 1995, 74th Leg., ch. 1002, Sec. 1, eff. 1/1/1996Amended By Acts 1995, 74th Leg., ch. 914, Sec. 12, eff. 9/1/1995Amended By Acts 1993, 73rd Leg., ch. 765, Sec. 7, eff. 8/30/1993Amended By Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 8.01, eff. 1/1/1992Amended by Acts 1991, 72nd Leg., ch. 901, Sec. 53(a), eff. 8/26/1991 Acts 1981, 67th Leg., p. 1691, ch. 389, Sec. 1, eff. 1/1/1982.The changes in law made by this Act that take effect January 1, 2026, do not apply to a business that first qualifies before that date as a new veteran-owned business as defined by Section 171.0005, Tax Code, as that section exists immediately before that date. A business that first qualifies before January 1, 2026, as a new veteran-owned business is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.This section is set out more than once due to postponed, multiple, or conflicting amendments.