New R&D State Tax Credit In Texas

Posted by Jeffrey M. Feingold on 05.24.13

Re-post from Houston Business Journal:

The Texas Legislature passed House Bill 800, which creates incentives to attract research and development investment and could lead to the creation of thousands of jobs in the state.

"HB 800 dramatically enhances our state's ability to attract R&D investment," Rep. Jim Murphy, R-Houston, said in a statement. "Relocation starts with R&D, then the design, production, sales distribution, accounting and finance departments follow."

Murphy authored the bill. The bill offers companies a choice between a franchise tax credit and a sales tax exemption for materials, software and equipment used for R&D purposes. Murphy said the bill encourages companies to create and retain high-paying R&D jobs in Texas and provides an incentive for research conducted in partnerships with Texas colleges and universities.

In exchange, those incentives may generate billions in increased economic activity in Texas and thousands of new, permanent jobs, proponents say. Murphy's bill passed through the House earlier this month.

Jeffrey Feingold, founder and Managing Partner of Tax Point Advisors, Inc., commented that "we work with hundreds of CPAs and their clients from coast-to-coast, assisting them to successfully file for R&D tax credits, and nearly all of the states we work in have great state R&D tax credits. TX is one of the few states without a state-level R&D tax incentive, and the proposed new law would be a great benefit for companies across the state."


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