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On February 5, 2009, Texas State Representative Ryan Guillen introduced 2009 H.B. 1073 which, if enacted, would provide a Research and Development Tax Credit for Texas businesses that are subject to the Texas Franchise Tax. [more]
H.B. 1073 would provide a tax credit in the amount of 5% of a taxpayer's Texas qualified research expenses that exceed its base amount. The bill, which closely follows the language of the previous Texas R&D credit, adopts the federal definitions of the terms "qualified research expenses" and "base amount," except that all payments and expenses must be for research conducted within the state. In calculating the amount of qualified research expenses for the taxable year, expenses incurred in a designated "strategic investment area" are multiplied by 2. In addition, the bill allows taxpayers to use an alternative calculation methodology, in certain instances, that is similar to the federal alternative incremental credit.
The credit may offset up to 50% of the taxpayer's Texas Franchise Tax for the taxable year, and unused credits may be carried forward for up to 20 years.
To read the full text of the bill, click HERE.
If you would like to follow the bill's progress in the Texas Legislature, click HERE.
For more information, please contact Kevin Corley at 800.564.4540 or kevin.corley@alliantgroup.com.
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