Texas HB4393 provides a franchise tax credit for certain research and development expenses and modifies sales and use tax application.

Texas HB4393 amends the Tax Code to introduce a tax credit for certain research and development expenses. This credit applies to qualified research expenses incurred by taxable entities, defined as the portion of expenses reported on specific lines of IRS Form 6765. The credit is calculated based on the difference between current period expenses and the average of the previous three periods. The credit amount varies depending on whether the entity contracts with public or private institutions of higher education.

Texas HB4393 provides a franchise tax credit for certain research and development expenses and modifies sales and use tax application.

Texas HB4393 amends the Tax Code to introduce a tax credit for certain research and development expenses. This credit applies to qualified research expenses incurred by taxable entities, defined as the portion of expenses reported on specific lines of IRS Form 6765. The credit is calculated based on the difference between current period expenses and the average of the previous three periods. The credit amount varies depending on whether the entity contracts with public or private institutions of higher education.