Texas SB2206 creates a franchise tax credit for certain research and development expenses, excluding institutions of higher education.

Texas SB2206 amends the Tax Code to introduce a franchise tax credit for qualified research and development expenses. This credit applies to taxable entities that incur such expenses, with specific provisions for those contracting with public or private institutions of higher education. The credit is calculated based on the difference between current and past research expenses, with a cap of 50 percent of the credit for any report. The bill also outlines rules for determining qualified research expenses and prohibits the assignment of credits.

Texas SB2206 creates a franchise tax credit for certain research and development expenses, excluding institutions of higher education.

Texas SB2206 amends the Tax Code to introduce a franchise tax credit for qualified research and development expenses. This credit applies to taxable entities that incur such expenses, with specific provisions for those contracting with public or private institutions of higher education. The credit is calculated based on the difference between current and past research expenses, with a cap of 50 percent of the credit for any report. The bill also outlines rules for determining qualified research expenses and prohibits the assignment of credits.