The Comptroller has submitted significant proposed amendments to Texas Admin Code Sec. 3.599, concerning the research and development activities franchise tax credit.
The proposed amendments do not provide a general applicable date. Existing franchise tax rule Sec. 3.599 applies to “franchise tax reports originally due on or after January 1, 2014.” Accordingly, the Comptroller may be intending to apply the changes retroactively. The proposed amendments provide the Comptroller’s interpretation and implementation of IRC Section 41 and applicable regulations adopted thereunder.
The publication triggers a 30-day period of public commentary. The earliest date of adoption is May 16, 2021.