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Texas R&D Franchise Tax Credit

Invests Texas innovation work Franchise Tax Credit to support state franchise-tax credit.

Texas Comptroller of Public AccountsUnited StatesTax credit
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The Texas R&D Franchise Tax Credit was substantially reformed by SB 2206 (89th Legislature, signed June 22, 2025, effective for franchise tax reports due on or after January 1, 2026). The credit applies to taxable entities subject to the Texas franchise tax that conduct qualifying research within Texas. The standard credit rate is 8.722% of the amount by which current-year qualifying R&D expenses …

Industries covered
AIBiotechClimate TechEnergy TechHardwareAdvanced ManufacturingAdvanced MaterialsMedtechQuantumRoboticsSemiconductors
Grants under Texas R&D Franchise Tax Credit

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.

Texas R&D Franchise Tax Credit
Open

Supports Texas companies through a state tax credit for eligible innovation spending to reduce commercialization costs.

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Last verified: 31 May 2026Source: comptroller.texas.gov