Texas Research and Development Tax Credit Passes
It’s back! Once again companies that are located in, or that are doing business in Texas, can take advantage of one of the most powerful business incentives available today, the Research and Development Tax Credit. The credit was last available in Texas in 2006 with the current bill having similar provisions and an expiration date of 2026.
This past week, the Texas legislature passed House Bill 800, which will ultimately drive business to Texas helping to create thousands of jobs for the State. This is indeed a job well done! Businesses that manufacture, design, engineer, innovate, improve products, processes, techniques, inventions, formulations, or software can benefit from the tax credit.
The new and improved State Credit is available not only for the scientist in the white lab coat, but for all industries including, but not limited to manufacturing, IT, life sciences/biotechnology, architecture & engineering (all disciplines), oil & gas (developing, processing, drilling), chemicals, food processing, agriculture, construction, and waste management, just to name a few.
Businesses need to take advantage of this incentive not only because it reduces the effective tax rate, is a great tax planning tool, and puts much needed cash back into the business for expansion or improvement, but because if it is not claimed, cash is simply being left on the table.
Businesses can claim the credit simultaneously at both the Federal and State level, and we at Braithwaite Global are committed to preserving the business rights of our clients to claim the Research Tax Credit. For over 30 years, our firm has assisted in recovering Billions in cash refunds, filing over 15,000 claims. R&D tax is all we do, and each of our specialized technical professionals has a minimum of 10 years of operational experience, affording us the ability to communicate fluently in the technical language of our client’s operations, research, and engineering staff.
Texas is part of the pack of 40 states offering the credit for qualifying R&D. The Texas Legislature has budgeted $2.5 Billion per year in tax credits, and with our National headquarters located in Houston, and offices throughout the U.S. and Internationally (Brazil, Canada, France, Ireland, and the United Kingdom), we can assist any size client in any location. Every business should be taking advantage of this incentive because it is good for business, and it is good for Texas and the USA.
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