Texas Lawmakers Just Shook Up Small Business Rules — What You Need to Know

The 2025 Texas Legislative Session concluded on June 2, following 140 days of activity that brought key victories for small business advocates. Among the 200+ bills tracked by the National Federation of Independent Business (NFIB), a standout achievement was House Bill 9, which raises the business personal property tax exemption from $2,500 to $125,000. This measure, which includes equipment and supplies regardless of profitability, could deliver $500 million in annual tax relief if approved by voters in November. The bill’s passage followed extensive lobbying, public testimony, and a strategic media push, as reported by NFIB.

Significant regulatory reforms were also passed, many based on recommendations from Governor Abbott’s Small Business Freedom Council, which NFIB co-chaired. Senate Bill 14 creates the Texas Regulatory Efficiency Office to streamline licensing, while House Bill 5195 modernizes agency systems to improve access and reduce paperwork. House Bill 11 eases the transfer of out-of-state occupational licenses to Texas. In health care, NFIB supported House Bill 138, requiring cost impact assessments for proposed insurance-related laws, while Senate Bill 2610 established a cybersecurity safe harbor, protecting small businesses with compliant digital security systems from certain legal liabilities.
Despite several successes, some key NFIB-backed measures did not pass. Senate Bill 2056, intended to reduce credit card swipe fees, and Senate Bill 30, aimed at curbing inflated legal judgments, both stalled. These issues remain high priorities as they continue to strain small business operations and inhibit job creation. Still, the session was marked by strong turnout from NFIB members and effective advocacy, reinforcing the group’s influence in shaping policy. With over 20,000 members across Texas, NFIB’s voice remains a powerful force as lawmakers respond to the evolving challenges facing Main Street businesses.