2025 Texas sessionsRegular and both called sessions have ended. This index covers House and Senate bills, not resolutions. Statuses come from official reports.

2025 · Regular session · House bill

HB2517

HB2517 exempts the Texas Windstorm Insurance Association (TWIA) and Texas FAIR Plan Association from the insurance premium tax in Insurance Code Chapter 221 and the maintenance tax in Chapter 252.

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Official caption: Relating to the applicability of premium and maintenance taxes to the Texas Windstorm Insurance Association and Texas FAIR Plan Association.

Became law without signatureSource-checked explanation published

Official report lists House author(s): Barry, Leo Wilson. This does not identify sponsors or amendment drafters.

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Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.

Bill highlights

Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.

HB2517 exempts the Texas Windstorm Insurance Association (TWIA) and Texas FAIR Plan Association from the insurance premium tax in Insurance Code Chapter 221 and the maintenance tax in Chapter 252.
The law took effect September 1, 2025, but its transition clause preserves tax liability only for periods before calendar year 2023, along with the former collection and enforcement law for that liability.
These are tax savings for the associations, not a mandated percentage reduction in each customer’s premium.

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What does it do?

HB2517 exempts the Texas Windstorm Insurance Association (TWIA) and Texas FAIR Plan Association from the insurance premium tax in Insurance Code Chapter 221 and the maintenance tax in Chapter 252. The first is generally a 1.6% tax on taxable premium receipts; the second helps pay insurance-regulation expenses through an annually adjusted rate. The act removes these two named associations from those chapters, not every insurer from every insurance tax. Final law, Sections 1–2; premium-tax rate; maintenance-tax rate and purpose.

The law took effect September 1, 2025, but its transition clause preserves tax liability only for periods before calendar year 2023, along with the former collection and enforcement law for that liability. The exemption therefore reaches 2023 and later liabilities rather than being solely prospective from September 2025. The act does not specify a refund amount, certify that a refund has been paid or order a particular payment to policyholders. Final law, Sections 3–4; official history.

These are tax savings for the associations, not a mandated percentage reduction in each customer’s premium. The act does not change policy coverage, deductibles or claim eligibility, and it does not require that every dollar saved be returned directly to an individual policyholder. Final law.

What changed along the way?

The introduced and House committee versions match. The engrossed version corrects capitalization, spacing and a statutory reference’s wording without changing the two exemptions, the pre-2023 liability protection or the September 1 effective date. Senate committee and final texts retain that substance. The official amendment index lists no amendments; committee history records favorable reports without amendments. There is no separate rejected tax proposal to include as enacted law. Introduced text; engrossed text; final law; all versions; amendment index.

For the full amendment record, open the official amendment index.

Official bill versions

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Who could benefit—and who could bear the costs?

TWIA and the FAIR Plan retain money otherwise paid in these taxes. That can improve their financial position, but the statute does not guarantee lower rates. The state loses premium-tax revenue, and other insurers can bear more of the maintenance-tax burden because the regulatory funding requirement remains. Final law; May 14, 2025 fiscal note.

The Legislative Budget Board reports a $27.983 million negative impact to General Revenue-related funds for fiscal years 2026–2027, consisting of $13.007 million in 2026 and $14.976 million in 2027. Its methodology separately estimates total premium-tax revenue losses of $17.343 million and $19.968 million in those years—$37.311 million combined. The note explains that 25% is allocated to the Foundation School Fund and assumes its losses would be replaced with General Revenue; it does not include that school-fund loss in the displayed table. The headline table should therefore not be presented as the entire premium-tax revenue reduction or as proof that school funding needs no replacement. Fiscal note and methodology.

The estimate uses $996.1 million in combined 2024 premiums and assumes premiums grow 10% annually; these are assumptions, not actual future receipts. It assumes no aggregate maintenance-tax revenue loss, because reducing these associations’ payments would correspondingly increase amounts paid by other entities. It anticipates no significant local-government fiscal implication. The April 1 introduced note contains the same estimates. Neither note quantifies a policyholder premium cut or a separate 2023–2024 refund payment. The bill makes no appropriation. Engrossed fiscal note; introduced fiscal note.

Official sources

Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.