Title TX, Tax Code

Sec. 171.812. EXPIRATION. (a) This subchapter expires January 1, 2029. (b) The expiration of this subchapter does not affect the carryforward of a credit under Section 171.806 or those credits for which a taxable entity is eligible after the date this subchapter expires based on …

Sec. 171.9201. DEFINITION. In this subchapter, "public or private institution of higher education" means: (1) an institution of higher education, as defined by Section 61.003, Education Code; or (2) a private or independent institution of higher education, as defined by Section 6…

Sec. 171.9202. QUALIFIED RESEARCH EXPENSE. (a) In this subchapter, "qualified research expense" means, subject to this section, the portion of the amount reported by a taxable entity as the entity's total qualified research expenses on line 48 of Form 6765, that is attributable t…

Sec. 171.9203. ELIGIBILITY FOR CREDIT. A taxable entity is eligible for a credit against the tax imposed under this chapter in the amount and under the conditions provided by this subchapter. Added by Acts 2025, 89th Leg., R.S., Ch. 1183 (S.B. 2206), Sec. 1, eff. January 1, 2026.

Sec. 171.9204. AMOUNT OF CREDIT. (a) Except as provided by Subsections (b), (c), and (d), the credit for any report equals 8.722 percent of the difference between: (1) the qualified research expenses incurred during the period on which the report is based; and (2) 50 percent of t…

Sec. 171.9205. CREDIT FOR CERTAIN TAXABLE ENTITIES THAT OWE NO TAX. (a) A taxable entity that incurs qualified research expenses during a period for which the entity is not required to pay the tax imposed by this chapter under Section 171.001(d) or 171.002(d) may calculate the am…

Sec. 171.9206. COMBINED REPORTING. (a) A credit under this subchapter for qualified research expenses incurred by a member of a combined group must be claimed on the combined report required by Section 171.1014 for the group, and the combined group is the taxable entity for purpo…

Sec. 171.9207. LIMITATION. The total credit claimed under this subchapter for a report, including the amount of any carryforward under Section 171.9208, may not exceed 50 percent of the amount of tax due for the report before any other applicable tax credits. Added by Acts 2025, …

Sec. 171.9208. CARRYFORWARD. (a) If a taxable entity is eligible for a credit that exceeds the limitation under Section 171.9207, the entity may carry the unused credit forward for not more than 20 consecutive reports. (b) Credits, including credit carryforwards, are considered u…

Sec. 171.9209. ASSIGNMENT PROHIBITED. A taxable entity may not convey, assign, or transfer the credit allowed under this subchapter to another entity unless substantially all of the assets of the taxable entity are conveyed, assigned, or transferred in the same transaction. Added…

Sec. 171.9210. APPLICATION FOR CREDIT. Except as provided by Section 171.9205(c), a taxable entity must apply for a credit under this subchapter on or with the report for the period for which the credit is claimed. Added by Acts 2025, 89th Leg., R.S., Ch. 1183 (S.B. 2206), Sec. 1…

Sec. 171.9211. RULES. The comptroller may adopt rules and forms necessary to implement this subchapter. Added by Acts 2025, 89th Leg., R.S., Ch. 1183 (S.B. 2206), Sec. 1, eff. January 1, 2026.

Sec. 171.9212. REPORTING OF ESTIMATES. (a) Before the beginning of each regular session of the legislature, the comptroller shall submit to the legislature and the governor estimates of: (1) the total number of taxable entities that applied credits under this subchapter against t…

Sec. 171.9213. DEPOSIT OF CERTAIN REVENUE. Notwithstanding any other law, for each state fiscal year, the comptroller shall deposit to the credit of the property tax relief fund an amount of revenue received from the tax imposed under this chapter sufficient to offset any decreas…