With the state’s 89th Legislative Session now underway, the Texas Association of Business (TAB) is championing and prioritizing policies that will continue our record-breaking streak of economic growth while protecting our pro-Texas, pro-jobs philosophy that has supported our rise to become the world’s 8th largest economy.
As I told NBC 5 in Dallas earlier this week, it is essential not only to preserve our state’s pro-business environment, but ensure that we continue to diversify our economy and take advantage of the opportunities we have to further enhance our competitiveness in both the national and global business arena:
“Let’s keep building. We are adding more jobs than any other state, that is true, and more people – but we’re really a country. When you look at our economy, it’s about $2.6 trillion, we’re now the eighth largest economy, ahead of Italy. Probably by the end of this year we’ll pass France and be, basically, a G7 economy…”
“We’re number one in energy, we’re number one in semiconductors, we have the largest health care concentration… we have more financial jobs now than New York.”
In line with these goals, TAB has announced its top policy priorities for the 89th Legislative Session, which include:
AI innovation holds the potential to unleash unprecedented economic growth, attracting for massive amounts of capital investment if Texas implements policies that foster modernization, transparency and opportunity while prohibiting blanket prohibitions on AI. With Texas’ tech sector contributing over $469 billion to the Texas economy, AI is undeniably a key policy priority. To harness its full potential, Texas must adopt a forward-thinking approach, one that encourages approach job creation and positions the state as a global leader in innovation.
R&D tax credits are essential for Texas to remain a global leader in technology and transformative research. TAB is advocating for the extension of R&D tax credits to ensure that they remain effective, competitive and administratively less costly in order to streamline bureaucratic processes that hinder innovation, particularly for small businesses and entrepreneurs who enrich our state’s economic landscape.
The Lone Star State is the No.1 energy provider in the U.S., which means our policies concerning energy and natural resources impact every single issue – from economic development and supply chains to national security, transportation and infrastructure. TAB promotes an “all-of-the-above-and-below” energy strategy that balances cost-effectiveness with innovation. This approach prioritizes a more reliable and consistent electric grid while supporting the sustainable management of essential natural resources, ensuring Texas remains at the forefront of energy production and economic growth.
Texas also needs to pay close attention to the most basic, critical natural resource that supports life for all Texans and their businesses – water. TAB is proud to be a founding member of the Texas Water Fund Coalition, which is focused on ensuring strategic, long-term investments in our state’s water infrastructure to ensure we can maintain our state’s high quality of life to continue attracting new residents, entrepreneurs, and businesses from around the world. In a new report on this challenge published yesterday, Senator Charles Perry of Lubbock – who spoke on a panel during this week’s 2025 TAB policy Conference – made clear:
“These are big billion-dollar conversations. If we don’t jump start this, I think Texas may have seen its best days on some level from some industries.”
To maintain Texas’ status as a premier business destination, Texas needs statutory and regulatory flexibility that safeguards water infrastructure and ensures the efficient management of water markets. These measures are critical to sustaining economic growth and supporting the needs of Texans and their businesses.
As the 89th Legislative Session commences, TAB is supporting bold, forward-thinking policies that will further strengthen our leadership and drive sustained economic growth as people and businesses from across the nation and world continue to flock here. By taking leadership in AI policy, enhancing R&D tax credits, strengthening our “all-of-the-above-and-below” energy strategy and securing critical water infrastructure, Texas will be unstoppable in attracting investment, creating jobs, and maintaining our global competitive edge.
We look forward to working with Governor Greg Abbott – the best jobs governor in the nation – alongside Lieutenant Governor Dan Patrick, Speaker Dustin Burrows and the entire Texas Legislature to keep Texas the best economy in the galaxy!
- Glenn Hamer, President & CEO, Texas Association of Business
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