Texas Tax Code

§ 171.9204 — AMOUNT OF CREDIT

TX § 171.9204Title 2. STATE TAXATION · Part F. FRANCHISE TAX; CREDITS · Ch. 171. FRANCHISE TAX · Art. T. TAX CREDIT FOR CERTAIN RESEARCH AND DEVELOPMENT ACTIVITIES

Statute text

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(a)Except as provided by Subsections (b), (c), and (d), the credit for any report equals 8.722 percent of the difference between:

(1)the qualified research expenses incurred during the period on which the report is based; and

(2)50 percent of the average amount of qualified research expenses incurred during the three tax periods preceding the period on which the report is based.

(b)If the taxable entity contracts with one or more public or private institutions of higher education and the entity incurs qualified research expenses under the contract during the period on which the report is based, the credit for the report equals 10.903 percent of the difference between:

(1)all qualified research expenses incurred during the period on which the report is based; and

(2)50 percent of the average amount of all qualified research expenses incurred during the three tax periods preceding the period on which the report is based.

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Legislative history

Added by Acts 2025, 89th Leg., R.S., Ch. 1183 (S.B. 2206), Sec. 1, eff. January 1, 2026.