Quick Answer: What are Substantial Rights in the Texas R&D Tax Credit? Substantial Rights refer to the legal authority of a taxpayer to use, exploit, and commercialize the results of their [...]

Quick Answer: What is the Funded Research Exclusion? The Funded Research Exclusion is a critical provision in the Texas R&D Tax Credit (and federal IRC §41) that prevents taxpayers from [...]

Answer: Property of a character subject to depreciation refers to tangible assets with a useful life of more than one year (e.g., machinery, computers) used in business. Within the Texas R&D [...]

Quick Definition: Texas R&D Tax Credit Supplies In the context of the Texas Research and Development Tax Credit, supplies refer to non-depreciable tangible personal property used directly in [...]

Texas R&D Tax Credit Wages Overview Wages for qualified services represent the taxable compensation paid to employees for the direct conduct, direct supervision, or direct support of [...]

Quick Answer: How does IRC Section 174 affect the Texas R&D Credit? Current Status (Pre-2026): Texas uses a fixed conformity date (December 31, 2011), meaning it does not follow the federal [...]

What is the Texas R&D Credit “No Existing Base Amount” Rate? The No Existing Base Amount Credit Rate is a statutory provision in the Texas Research and Development Tax Credit [...]

What is the Texas ASC Methodology? The Alternative Simplified Credit (ASC) methodology is a calculation framework for the Texas Research and Development Tax Credit. Under the new Subchapter T [...]

What is the base amount for the Texas R&D tax credit? In Texas, the R&D tax credit base amount is defined as 50% of the average qualified research expenses (QREs) incurred in Texas [...]