Texas R&D Franchise Tax Credit
Supports Texas companies through a state tax credit for eligible innovation spending to reduce commercialization costs.
The Texas Research and Development Franchise Tax Credit allows entities subject to the Texas franchise tax to claim a credit against their annual tax liability for qualifying research expenditures (QREs) conducted in Texas. Enacted under Senate Bill 2206 and effective January 1, 2026, the credit rate increased substantially from 5% to 8.722% for standard QREs and to 10.903% for R&D contracted to T…
Franchise tax credits of 8.722%–10.903% on incremental qualified research and development expenditures conducted in Texas, claimable annually with a 20-year carryforward.
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