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Texas Tax Code - TAX § 151.3182. Certain Property Used in Research and Development Activities; Reporting of Estimates and Evaluation

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) In this section:

(1) “Depreciable tangible personal property” means tangible personal property that:

(A) has a useful life that exceeds one year; and

(B) is subject to depreciation under:

(i) generally accepted accounting principles; or

(ii) Section 167 or 168, Internal Revenue Code.

(2) “Internal Revenue Code” has the meaning assigned by Section 171.651.

(3) “Qualified research” has the meaning assigned by Section 41, Internal Revenue Code.

(b) The sale, storage, or use of depreciable tangible personal property directly used in qualified research is exempted from the taxes imposed by this chapter if the property is sold, leased, or rented to, or stored or used by, a person who:

(1) is engaged in qualified research; and

(2) will not, as a taxable entity as defined by Section 171.0002 or as a member of a combined group that is a taxable entity, claim a credit under Subchapter M, Chapter 171,  1 on a franchise tax report for the period during which the sale, storage, or use occurs.

(c) Before the beginning of each regular session of the legislature, the comptroller shall submit to the legislature and the governor:

(1) an estimate of the total number of persons who received exemptions under this section and an estimate of the total amount of those exemptions; and

(2) an evaluation of the effect of the exemption under this section, in combination with the credit authorized by Subchapter M, Chapter 171, that is conducted by an independent researcher at a center for research authorized by Section 1.005, Education Code, on:

(A) the amount of qualified research performed in this state;

(B) employment in research and development in this state;

(C) economic activity in this state; and

(D) state tax revenues.

(d) The comptroller shall require a person who receives an exemption under this section to complete a form to provide the information necessary for the comptroller to make the evaluation required by Subsection (c)(2). The information provided on the form is confidential and not subject to disclosure under Chapter 552, Government Code.

(e) The comptroller shall provide the estimates and evaluation required by Subsection (c) as part of the report required by Section 403.014, Government Code.

(f) This section expires December 31, 2026.

1 V.T.C.A., Tax Code § 171.651 et seq.
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Cite this article: FindLaw.com - Texas Tax Code - TAX § 151.3182. Certain Property Used in Research and Development Activities; Reporting of Estimates and Evaluation - last updated January 01, 2024 | https://codes.findlaw.com/tx/tax-code/tax-sect-151-3182/

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