Texas R&D Tax Credit Summary

R&D Tax Credit Available

Yes

STATE

Texas

NAME

Research & Development Tax Credit

DOES IT APPLY TO C-CORPS & PASS THROUGHS?

Can apply against Franchise Tax for all business entities.

DESCRIPTION

Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Texas-based expenses.

PERCENTAGE

5% on incremental expenses over base amount. Base amount follows federal ASC method.