Weekly Round-Up: Texas Two-Step - How to Qualify for the State’s New R&D Incentives


Taxpayers with significant operations in Texas may benefit from new research and development incentives put into place by the state, Giles B. Sutton, a partner at McGuireWoods LLP in Washington, D.C., says in this week’s issue of the Bloomberg BNA Weekly State Tax Report.  The legislation “provides a sales tax exemption for certain depreciable tangible property used in qualified research or, alternatively, a research and development credit which can offset a portion of a taxpayer's tax due under the Revised Texas Franchise Tax for certain qualified research expenses,” Sutton states.

The incentives have generous carryforward periods, if taxpayers follow the rules, Sutton explains.

For a primer on the technical nuances of the new incentive, check out Sutton’s article, which can be read in its entirety here.

Continue the discussion on Bloomberg BNA’s State Tax group on LinkedIn:  Should other states model their research and development credit after the Texas credit?

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library. 

In other developments…

Texas Appellate Court – Mining and extraction costs do not qualify for the manufacturing sales/use tax exemption, a new alert by PwC

Do Sales Tax Holidays Ever Make Sense, by the Tax Policy Center, a joint venture of the Urban Institute and Brookings Institution.

Toyota Motor Credit Corp. "Moving Forward" in New Jersey Tax Court, by Sutherland

Compiled by Priya D. Nair

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