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In a move to stimulate economic growth and support small businesses, the state of Texas announced new tax breaks for qualifying businesses. Governor John Smith signed the bill into law on Thursday, September 3, 2025, with the hope of encouraging entrepreneurship and job creation throughout the state.Under the new legislation, small businesses with annual revenues under $500,000 will be eligible for a 15% tax credit on their state income tax. This credit is aimed at easing the financial burden on small businesses, allowing them to reinvest their savings back into their operations.In addition to the tax credit, the bill also includes a provision for a one-time grant program for small businesses looking to expand or invest in new equipment. Qualifying businesses can apply for grants of up to $25,000 to help cover the costs of growth and development.Governor Smith emphasized the importance of supporting small businesses in Texas, stating, "Small businesses are the backbone of our economy, and we must do everything we can to help them thrive and succeed. These new tax breaks and grants will provide much-needed relief to small business owners and entrepreneurs, allowing them to grow and create jobs in our state."The Texas Department of Revenue will be releasing guidelines for businesses to apply for the tax credit and grant program in the coming weeks. Eligible businesses are encouraged to take advantage of these new incentives to support their growth and contribute to the overall economic prosperity of Texas.The introduction of these new tax breaks comes at a critical time for Texas, as the state looks to recover from the economic challenges brought on by the COVID-19 pandemic. By providing much-needed support to small businesses, the state aims to foster an environment of growth and success for entrepreneurs and business owners across Texas.