TEXAS R&D TAX CREDIT ADVISORS

State Credit Name: Texas Research and Development Tax Credit

Expiration Date: December 31, 2026

Who Can Apply? Corporations and flow-through entities

Credit Carry Forward: Unused Texas R&D credit can be carried forward 20 years.

About the Credit: Starting with tax returns filed after January 1, 2014, Texas taxpayers can claim the Texas R&D state credit to offset a portion of their franchise tax or use it towards sales and use tax exemption on the purchase or lease of depreciable, tangible property used in qualified research in Texas. Our experts can assist you with everything from Austin federal credit to Houston, Dallas and everywhere between in the Lone Star State. The credit rates for the Franchise Tax Credit are the following in the state of Texas:

  • 2.5% for companies who have less than 3 years of QRE’s and did not work through a university.
  • 3.125% for companies who have less than 3 years of QRE’s, but did work through a university.
  • 5% for companies who have 3 years of QRE’s, but did not work through a university.
  • 6.125% for companies who have 3 years of QRE’s and did work through a university.

Notes: The allowable Franchise Tax Credit in any one period, including carry forward amounts, cannot surpass 50% of the franchise tax liability for that period.

Click here to find out if you qualify for the federal research credit.


Texas State Incentives

Did you know that Federal R&D tax credits were reinstated in June of 2013? Texas research and development tax credit options are locked until 2026. For this, and other relevant information regarding Texas R&D credit, we encourage you to watch the video on the right. If you need more information or have any questions at all, we look forward to your call. Contact us at our Austin location at (512) 333-2076, our Dallas location at (469) 522-3369 or our Houston location at (281)-899-0056.


Why Swanson Reed

We provide full, hands-on support from start to finish.

Are You Eligible?

Take our eligibility wizard to find out if you qualify for a tax credit.

Calculate Your Benefit

Use our quick calculator to determine your R&D tax credit benefit.

Know Your Deadline

 Never miss a deadline again with our R&D Tax Credit filing deadline calculator.

For Accountants

 Take advantage of our extensive database of videos, case law and recent news.

Industry Case Studies

 Find out the qualifying R&D activities specific to your industry.

Contact Us


Contact your local Swanson Reed office to speak with a representative in your area today. 

Swanson Reed

700 Lavaca Street
Suite 1400
Austin, TX 78701

T: 512-333-2076
F: 512-256-8157

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Swanson Reed

3839 McKinney Avenue
Suite 155-2013
Dallas, TX 75204

T: 469-522-3369
F: 512-256-8157

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Swanson Reed

5161 San Felipe Street
Suite 320-1005
Houston, TX 77056

T: 281-899-0056
F: 512-256-8157

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