POSTED: Tuesday, April 16, 2013 - 9:35am
UPDATED: Wednesday, April 17, 2013 - 8:14am
AUSTIN, TEXAS (KVEO NEWSCENTER 23) — Governor Perry announced a four point plan to provide up to $1.6 billion in tax relief to businesses subject to the state's franchise tax.
Governor Perry's plan in helping those businesses would be reducing the franchise tax rate by 5%, provide a $1 million deduction with revenue up to $20 million, lowering the rate for EZ form filers, giving companies relocating to Texas from out of state a one-time deduction of moving expenses in the first year they pay the franchise tax.
Governor Perry stated, “By cutting taxes for Texas businesses, we are helping job creators in our communities and promoting economic growth across the state. Businesses that keep more of their money can pass savings on to consumers, hire more workers, offer greater employee benefits or reinvest it into their companies and grow their business – all of which are good for Texans and our growing economy.”
Governor Perry’s business tax relief plan would also have the effect of making permanent the current small business tax exemption. That exemption currently impacts 29,000 businesses and is set to expire in 2014.