Incentives For Conducting Business In Texas
In the past year, Texas has been ranked the number one state for future job growth and was listed in the top ten states for business. I tip my hat to you, Texas.
Although, this all means nothing if the incentives and benefits put in place by the state are being underutilized by businesses. It’s important to know why Texas ranks so highly and exactly what sets Texas apart from the rest. ( hint: it’s more than the food).
Texas Emerging Technology Fund
The Texas Emerging Technology Fund (TETF) was established to provide Texas with an unprecedented advantage in areas of research, development and commercialization of emerging technology. TETF is available in three areas:
- Incentives for Commercialization Activities Awards: Funds to help companies take ideas from concept to development to ready for the marketplace.
- Research Award Matching Awards: Funds create public-private partnerships which leverage the unique strengths of universities, federal government grant programs and industry.
- Acquisition of Research Superiority Awards: Funds for Texas higher education institutions to recruit the best research talent in the world.
Regional Centers of Innovation and Commercialization
The Regional Centers of Innovation and Commercialization (RCICs) were created to support the activities for a specified region; research and development, commercialization of research and development, incubation and acceleration for business related to research and development, and workforce training for business related to research and development.
On June 14, 2013, House Bill 800 was signed reinstating Texas R&D tax credits through 2026. Much of the work done on a federal R&D tax credit return applies to a Texas return, so you can essentially get two tax credits for one tax workup.
In order to achieve a benefit from R&D in Texas, the taxpayer makes one of two elections ; the franchise tax credit for R&D expenditures or the sales and use tax exemption on the purchase or lease of depreciable, tangible personal property used in qualified research in Texas.
Texas Enterprise Fund
The Texas Enterprise Fund is a cash grant used a financial incentive tool for projects that offer significant projected job creation and capital investment. The TEF has granted more than $500 million in grants since its creation in 2004.
If your company is interested in claiming the R&D Tax Credit please contact one of our Swanson Reed specialists for more information.