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