State program
Texas Research and Development Incentive
A restructured incentive delivered as a sales and use tax exemption on qualifying research materials and equipment.
Program overview
Texas historically allowed taxpayers to elect between a franchise tax credit and a sales tax exemption for research materials. Legislation replaced the franchise tax credit with an expanded and simplified sales and use tax exemption for tangible personal property directly used in qualified research, effective for periods beginning in 2026. Companies must hold a registration number from the Texas Comptroller and issue exemption certificates to suppliers at the point of purchase.
Eligibility
Taxable entities engaged in qualified research in Texas that register with the Texas Comptroller for a research and development registration number.
Benefits
Exemption from Texas sales and use tax on the purchase, lease or rental of depreciable tangible personal property used in qualified research.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.