Texas tax credits and incentives
Review the program rules and claim timing below, then confirm the requirements with the administering agency.
This directory is not tax advice. Confirm eligibility, tax-year rules, deadlines and filing requirements with a tax professional.
Amounts are subject to the conditions in each listing. A source review does not mean applications are open or that a business qualifies.
1 program
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Texas research and development franchise credit
Tax credit
A report cannot claim this credit if the entity or combined group used the former research sales-tax exemption in its underlying period. Generally, credit use is capped at 50% of tax due; eligible no-tax refunds follow different rules. [Texas enacted SB 2206, Subchapter T research credit]
Generally 8.722% of qualifying expenses above half the prior-three-period average; 4.361% of current expenses if a prior period has none. Higher university-contract rates may apply. [Texas enacted SB 2206, Subchapter T research credit]
Check program requirements [Texas enacted SB 2206, Subchapter T research credit]
Eligibility, claim steps and deadlines for Texas research and development franchise credit
- Who qualifies
- Taxable entities with qualifying Texas research expenses documented by federal Form 6765; special refund rules cover certain entities owing no franchise tax. [Texas enacted SB 2206, Subchapter T research credit]
- What it’s worth
- Generally 8.722% of qualifying expenses above half the prior-three-period average; 4.361% of current expenses if a prior period has none. Higher university-contract rates may apply. [Texas enacted SB 2206, Subchapter T research credit]
- How to claim
- Claim on or with the applicable franchise-tax report; eligible no-tax entities use the Comptroller’s prescribed form. The act does not give a state form number. [Texas enacted SB 2206, Subchapter T research credit]
- Deadlines and application windows
- Applies to reports originally due on or after January 1, 2026. A no-tax refund application is due by the corresponding report deadline. [Texas enacted SB 2206, Subchapter T research credit]
Sources reviewed
Full details and sources for Texas research and development franchise credit