Powering Texas Innovation

Austin, TX — On August 26, 2025, the Texas Association of Business (TAB) released a recap of major wins from the 89th Legislative Session, showcasing initiatives to drive economic growth, as announced today at 03:15 PM CDT.

The Details:

• Flagship Wins:

  • R&D Tax Credit Expansion (SB 2206): Raised to 8.7% (10.9% with university partnership), projecting $13.8 billion in economic growth and 113,000 jobs.

  • Texas Advanced Nuclear Development Fund (HB 14): $350 million for nuclear innovation grants, the largest fund in the nation.

  • Texas Cyber Command (HB 150): $135 million for the nation’s largest state cyber force.

  • Texas Water Fund (SB 7 / HJR 7): $20 billion over 10 years to modernize water systems, supporting advanced manufacturing and data centers.

  • Business Property Tax Cut (HB 9): Raises the exemption to $125,000.

• Technology & Innovation:

  • AI Innovation Sandbox (HB 149): 36-month regulatory safe zone for AI startups.

  • Quantum Initiative (HB 4751): State-backed plan for quantum workforce, R&D, and commercialization.

  • Corporate Governance Reform (SB 29): Stronger business courts, protection for free enterprise.

  • New Global Trade Offices (HCR 90): $2.1 million for Israel, UK, and Northern Ireland.

• Emerging Growth Funds:

  • Texas Enterprise Fund: Nearly $100 million to win corporate relocations and expansions.

  • Semiconductor Incentives: $250 million to attract advanced chip manufacturing.

  • Space Exploration & Aeronautics Fund (HB 4850): $300 million for spaceflight and advanced aeronautics leadership.

  • Strategic Bitcoin Reserve (SB 21): $10 million state-backed digital asset investment.

• Workforce:

  • Community College Finance Reform (SB 1786): $89.5 million outcomes-based model tied to high-value credentials.

  • Technical Colleges Endowment: $850 million to expand vocational training.

  • Texas University Fund: $1.3 billion to strengthen research universities outside UT and A&M.

• Energy & Infrastructure:

  • Texas Energy Fund: $5 billion low-interest loans for new natural gas plants.

  • Broadband Expansion: $2.5 billion to connect every corner of Texas.

  • Business Process Modernization: $6.9 million to modernize filings, $3.9 million to speed incorporations.

  • Statewide IT Upgrades: $724 million to improve agency systems and services.

Why It Matters:
These measures enhance Texas’s economic competitiveness, innovation, and infrastructure for sustained growth.