New Texas R&D Credit Offers Sales or Franchise Tax Breaks

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

The Research and Development tax credit in Texas, which took effect Jan. 1, 2014, provides companies the option of selecting either a sales tax exemption on property purchased by persons engaged in qualified research activities or the franchise tax credit, but not both. Giles B. Sutton, a partner with McGuireWoods LLP in Washington, D.C. offers a primer on the technical nuances of this new incentive.